Ethereum’s price surged by 12% over four days, largely driven by an influx of $164 million in new staking deposits and a shift in global market sentiment following Donald Trump’s push for rate cuts. This surge allowed Ethereum to overtake Solana (SOL) and XRP in weekly performance, after struggling below the $1,600 mark earlier in the week.
Key Drivers of Ethereum’s Rally
The rally began when Ethereum broke above the $1,825 mark on April 25, reaching its highest level in 50 days. The boost came despite Ethereum’s earlier consolidation below $1,600, where it had been for nearly two weeks. This price movement coincided with a global market shift triggered by Trump’s policy changes, which sparked positive sentiment and renewed investor appetite for riskier assets like Ethereum.
The increased staking activity played a significant role in Ethereum’s rise. Ethereum’s staking deposits surged by 90,432 ETH between April 22 and April 26, amounting to approximately $164 million. This increase in staking helps reduce Ethereum’s circulating supply on exchanges, tightening liquidity and supporting the price. Additionally, the growing participation in staking signals confidence in Ethereum’s long-term potential.
Staking Boosts Price Action
Staking not only reduces the available supply but also locks up assets, as withdrawals from Ethereum’s Beacon Chain can take up to nine days. This liquidity lockup strengthens Ethereum’s support levels, as staked ETH is less likely to be sold immediately, which helps maintain upward momentum even if market sentiment weakens in the short term.
Looking Ahead: Bullish Momentum Continues
With Ethereum maintaining support above the key $1,800 level, market indicators like the Keltner Channel and Relative Strength Index (RSI) suggest that the price could continue its upward trajectory toward $1,928 to $1,950. A close above $1,850 would solidify this bullish outlook, with the next major resistance seen at $1,950.
In contrast, failure to hold the $1,800 support could lead to a pullback to $1,700. However, the overall market dynamics and recovery in Ethereum’s RSI suggest that a bullish continuation into early May remains the most likely scenario.
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