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Ethereum Price Forecast – Institutional One-Click Staking Could Send ETH to $3000

Highlights:

  • Ethereum is still range-bound between $2110.3 and $1828.9
  • Upside breakout has a high probability direction and could send ETH to $3000
  • More efficient institutional staking could trigger a rally by shrinking supply 

Ethereum (ETH) is making minor gains intraday, a reflection of the slight rebound across the market. When writing, Ethereum was trading at $2043.48, an increase of 1% in the day. However, Ethereum trading volumes have dropped in the day, down 9.01% to stand at $19.01 billion. This drop in volumes despite the minor price gains points to caution. 

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New investors are likely choosing to stay on the sidelines, possibly due to what is happening in the geopolitical space. On a more positive note, the low volumes could be an indicator that, despite the macro uncertainties, holders are not keen on selling their Ethereum. Looking ahead, there is a good chance that Ethereum could be headed higher going into the future

One-Click Staking Could Trigger Ethereum Rally

One of the factors likely to push Ethereum higher is the fact that its demand and supply dynamics could be headed for a major reshape. That’s because Vitalik Buterin, one of the Ethereum founders, has announced the launch of DVT-Lite.

The goal of this new development is to make institutional staking as easy as a click of a button. The idea of DVT-Lite is to decentralize, which, as currently stands, is concentrated in the hands of a few exchanges. This concentration poses a risk for Ethereum, and through DVT-Lite, staking could become more dispersed.

However, the biggest impact is that it could trigger a mass flow of capital into Ethereum staking, as it becomes easier to do. Already, 36 million Ethereum, totalling $118 billion, are staked. If DVT-Lite triggers a surge in this figure, then the supply of Ethereum in circulation could drop significantly. This could trigger a rally to new highs, as demand would be chasing an increasingly dropping supply. Such potential could explain why Ethereum is in the green intraday, even as most altcoins are overall down intraday.

On-Chain Activity Points to Surging Demand for Ethereum

Besides the positive push from the expected easier staking, Ethereum’s price is being supported by growing activity on its network. On-chain data shows that Ethereum adoption is rising exponentially. Ethereum active addresses are now close to 2 million, and continue growing. This is more than 2x the number of active addresses Ethereum had before 2021.

Data also shows that DeFi activity on the Ethereum network is on the rise. As this activity grows, the demand for the Ethereum token will grow as well. Combined with the shrinking supply due to staking, Ethereum could be headed to new highs in the short to medium term. 

Clarity Act and Other Macro Factors Could Trigger ETH Rally to $3000

Ethereum could also get a boost from the fact that, at a macro level, things are easing up. While the war rages on in the Middle East, the markets appear to have priced most of the bad news around it so far. As such, cryptocurrencies could start moving more based on other macro factors, unless something extreme happens on the battlefield.

One macro factor that could positively impact Ethereum is the Clarity Act. If this law passes soon, as many analysts are expecting, the cryptocurrency market could rally. This is due to the expectation that it could trigger an inflow of trillions of dollars into the cryptocurrency market. 

Technical Analysis – Ethereum Trading In a Multi-Week Range

Ethereum continues consolidating between the $2110.3 resistance and $1828.9 support. If bulls push Ethereum through the $2110.3 resistance, a rally to $3013.3 could follow. If they fail, two scenarios are likely to play out.

Ethereum Price Chart
Source: TradingView

The first is a continuation of the consolidation happening at the moment. The second is a drop through the $1828.9 support, which could send Ethereum to prices under $1500. With the announcement of DVT-Lite and the pricing in of war, the odds favor a ETH rally through $2110.3 to $3000, or higher.

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