Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has posted an impressive 40% gain over the past week, marking one of its strongest performances in recent months. This surge has not only injected renewed optimism into the market but has also pushed Ethereum stakers back into profit — a milestone they hadn’t seen since early March 2025.
For context, staking on Ethereum involves locking up ETH in the network to help validate transactions and secure the blockchain. In return, stakers earn rewards. However, due to earlier market downturns, many of these staked coins had been sitting at unrealized losses, especially when ETH dipped below their average acquisition price. That trend appears to be reversing, and stakers are finally seeing green again.
According to data from CryptoQuant, staked ETH had been underwater since March 3, 2025. At that time, the realized price — or the average cost basis of staked ETH — stood at $2,279. Market conditions worsened shortly afterward, with ETH’s trading price falling below this level and remaining there for several weeks. But the recent market-wide rally changed the dynamics. As of May 9, ETH climbed above the $2,279 mark, effectively moving staked coins into profit territory.
This shift has broader implications for the Ethereum network. When stakers transition from losses to gains, it typically boosts their confidence in the protocol. More importantly, it decreases the likelihood of large-scale selling, as participants become more inclined to continue staking rather than cashing out. This can lead to greater stability and even increased participation from validators and long-term holders.
The derivatives market is also painting a bullish picture. Ethereum’s funding rate — the fee paid between traders in perpetual futures contracts — has turned positive, currently sitting at 0.001%, according to Santiment. A positive funding rate implies that more traders are willing to go long on ETH, paying a premium to maintain their positions. This trend suggests growing conviction in Ethereum’s upward momentum and is often seen as a sign of healthy market sentiment.
Further reinforcing this optimism is the behavior of Ethereum’s on-balance volume (OBV), a key technical indicator that tracks cumulative buying and selling pressure. The OBV has risen to 26.05 million, reflecting a surge in trading activity and buyer interest. Historically, when OBV climbs alongside price, it indicates strong demand and the potential for further upward movement. In Ethereum’s case, this could mean a continued rally toward the next resistance level at $2,745.
However, not all outcomes are bullish. If market sentiment were to shift or broader macroeconomic factors were to weigh down the crypto market, sellers could regain control. Should that happen, ETH could fall back to a key support level around $2,424. A breakdown below that price floor could even see Ethereum revisit the $2,243 mark, a level that would reintroduce stakers to losses and potentially renew selling pressure.
Nevertheless, as it stands, the market outlook remains largely favorable. Ethereum’s strong price performance, combined with the return of profitability for stakers and a noticeable increase in bullish sentiment among traders, paints a promising short-term picture. Additionally, the network’s underlying metrics — such as rising OBV, consistent validator activity, and stable staking participation — suggest that this rally is built on more than just hype.
In summary, Ethereum’s recent 40% price increase has re-energized the market and brought staked ETH back into profitability for the first time in over two months. With technical indicators like the funding rate and OBV reinforcing bullish momentum, Ethereum appears poised for further growth — provided market conditions remain supportive. For stakers and traders alike, the next few weeks will be crucial in determining whether ETH can maintain its upward trajectory or if a correction is on the horizon.
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