Ethereum
Can the launch of the Spot Ethereum (ETH) ETF revive staking?
Ethereum (ETH) price is set to see a massive surge following the launch of ETH spot ETFs this week.
However, the most important question is whether the hype around ETFs will be able to revive interest in staking or not.
Ethereum Spot ETF Could Bring Major Changes
Ethereum’s Transition from Proof of Work Proof of Stake has been met with extreme optimism. It introduced a new form of yield for ETH holders, something that Bitcoin cannot offer because it is a proof of work chain.
In addition, with ETH Staking The power of partial governance emerged, as becoming or endorsing a validator made investors an integral part of the chain.
This ideology led to millions of ETH being staked on-chain. However, the eventual arrival of resttaking in June 2023 has led to significant outflows of staked ETH, which have been ongoing since May 24 of this year.
With applications for spot Ethereum ETFs approved on May 23, validators stopped staking. Since then, the number of validators, or the number of unique addresses holding at least 32 ETH, has remained stable at around 116,480.
Learn more: How to invest in Ethereum ETFs?
Ethereum validator addresses. Source: Glass node
However, the Spot ETF launch should revive interest in staking. Discussing the same, Chen Arad, Co-Founder and CXO of Solidus Labs, exclusively told BeInCrypto,
“A key driver for institutional interest in Ethereum ETFs in the future would be staking of ETH held by ETF funds, which is not currently included in the approved rule change and proposals. This could make ETH ETFs an even more attractive product to a broader audience and open the door to new institutional flows and increased engagement in the ETF.” Challenge.
However, for regulators to be comfortable with ETH ETF staking, the industry must continue to address fundamental concerns around compliance and security “Risks in the pre-chain block building process.”
This could also have a similar bullish impact on Ethereum price.
ETH Price Prediction: $4,000 in Sight
Ethereum Price Bounces Back From Support 38.2% Fibonacci retracement level at $3,336. The second-generation cryptocurrency is currently trading at $3,474. ETH is expected to reclaim the 50% Fibonacci line at $3,582.
Ethereum price could see a massive rally if this happens, which could even push the 61.8% Fibonacci line into support. This level sits at $3,829, which could propel ETH towards $4,000 in the long term.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
On the other hand, failure to break through any of these key resistance levels could lead to a slowdown in the recovery. ETH investors sell their holdings during this periodThe altcoin could end up back at $3,336, invalidating the bullish thesis.
Disclaimer
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