Ethereum is one of the best-performing coins today, gaining more than 7% and climbing above $2,700. This jump follows weeks of gradual movement and marks the fifth attempt to break through this strong resistance level.
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Recovery From Long-Term Lows
Ethereum has faced significant struggles over the past few months, falling from over $4,000 in December 2024 to under $1,500 by April. While the ongoing tariff war has contributed to the decline, ETH experienced a far steeper drop than other major cryptocurrencies.
However, the trend shifted in early May following the successful launch of the Pectra upgrade on the mainnet. Within days, Ethereum rebounded from $1,800 to $2,500. Since then, it has made several attempts to breach the $2,700 level but has struggled to sustain this price point.
Staking Surge Reflects Strong Investor Confidence
One of the key drivers behind today’s Ethereum price rally is the continued expansion of its staking program. Ethereum has now reached an all-time high in the amount of Ether locked in its staking system, with nearly 34.7 million ETH currently staked – valued at approximately $90 billion. This accounts for nearly 28% of the total ETH supply
Read also: Why Not Staking Your Coins Might Be Costing You Money
Institutional Moves and ETF Anticipation
Institutional interest in Ethereum has also surged in recent weeks. Some high-profile companies have announced significant investments in Ethereum, while ETF inflows have risen sharply. Notably, the iShares Ethereum Trust, managed by BlackRock, has experienced 23 consecutive days of inflows, signaling growing confidence in the asset.
Ethereum’s price increase also coincides with anticipation around potential regulatory approval of Ethereum staking within U.S. exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) is expected to rule soon on the inclusion of staking in Ethereum ETFs, though previous deadlines have been extended. A positive decision could provide a significant boost to institutional interest, further driving demand and price growth.
A Bright Future for Ethereum?
As Ethereum crosses the $2,700 threshold again, the key question remains: Can it sustain this upward momentum? With increasing interest in staking, growing anticipation of Ethereum ETFs, and an overall bullish market trend, the outlook appears positive. However, ETH must hold above the crucial resistance zone of $2,700–$2,750 to solidify its position.
