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The value of Ethereum (ETH) increased by a slight 2.5% to the mid-$2,700s on Friday, effectively keeping it within current levels. However, the muted price movement masked a significant positive development regarding US ETFs that could greatly enhance long-term demand for ETH.
NEW: @Grayscale & @NYSE have filed with the SEC to enable their Ethereum ETFs ($ETHE & $ETH) to commence staking the Ether they hold.
(21Shares & CBOE submitted similar filings earlier this week) pic.twitter.com/3iF0OMaPSA— James Seyffart (@JSeyff) February 14, 2025
On Friday, crypto asset manager Grayscale submitted a filing with the SEC to allow staking of their Ethereum ETF holdings, following similar filings from 21Shares and CBOE earlier this week.
It is highly likely that the newly pro-crypto SEC will approve these filings, which means that Ethereum ETF investors in the USA will soon benefit from a consistent ETH yield on their investments.
Currently, Ethereum staking yields are around 3.31%. This is lower than the US 10-year yields, which are approximately 4.5%, indicating that traditional finance yield seekers may not rush to ETH ETFs.
Nonetheless, it is better than nothing and significantly enhances the attractiveness of investing in ETH ETFs, which could accelerate their long-term adoption and support Ethereum’s price over time.
Ethereum Price Still Uninspiring
Despite these positive developments, Ethereum’s price movement remains lackluster, which is not overly surprising.
Recent US inflation data has kept crypto markets trading cautiously, with Bitcoin (BTC) currently unable to surpass $100,000.
This situation is concerning for Ethereum supporters. ETH’s aggressive sell-off in early February saw it fall below its 200DMA, which now appears to be acting as resistance.
With Ethereum’s price still significantly below its other major moving averages, momentum continues to favor the bulls.
However, the US dollar index (DXY) is declining, and US equities are retesting record highs, suggesting that the macroeconomic environment is not currently unfavorable.
In the absence of a major macroeconomic shock in the coming months, ETH is likely to remain a buy on dips, supported by ongoing regulatory tailwinds in the USA under the Trump administration and a Republican in charge.
It is important to note that the Trump administration includes many Bitcoin and crypto holders, including Trump himself, whose World Liberty Financial has hundreds of millions in Ethereum.
Reports circulating on X on Friday indicated that Trump is currently staking $5.9 million on Lido Finance.
Trump is staking $5,900,000 Ethereum on @LidoFinance.
BULLIEVE me or not. $ETH is set to soar. pic.twitter.com/66JOwNjP27— Ted (@TedPillows) February 14, 2025
As Eric Trump encouraged his followers earlier this month, Ethereum likely remains a cryptocurrency to buy on the dip, as is the case now.
February has historically been one of the best months of the year for Ethereum’s price.
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February is traditionally the most bullish month.
Similar to uptober, I believe the real pump
will commence by mid to late in the month.
But rest assured, ETH is poised to explode. pic.twitter.com/SluC3XS4om— Wizzy (∩ ͡° ͜ʖ ͡°)⊃━ﾟ. * ･ ｡ﾟ, (@WizardCalls) February 10, 2025
Can ETH Reach $10K?
With prospects looking positive for the broader crypto market, should investors be worried about Ethereum’s underwhelming price performance compared to competitors like Bitcoin, Solana, and Sui so far this cycle?
The rise in competition, both from rival layer-1s and its own layer-2 scaling solutions, is indeed a concern for ETH.
Overly optimistic predictions from 2021 (i.e., that Ethereum would surpass Bitcoin) are no longer being discussed.
However, Ethereum still possesses numerous advantages, making it unwise to bet against its ability to maintain its status as a leading player in the crypto market.
As noted, Ethereum is among the largest holdings of the US President’s family. More importantly, factors such as Ethereum’s backing by BlackRock and its dominance in DeFi are significant.
According to DeFi Llama, Ethereum’s total value locked (TVL) was approximately $58.7 billion, accounting for over half of the total TVL across all blockchains.
This represents a strong vote of confidence in the blockchain from DeFi users/investors, suggesting claims that “Ethereum is dead” are unfounded.
Indeed, the fact that Ethereum has underperformed in this cycle could indicate that it has greater upside potential from this point, a perspective recently shared by X user Crypto Rover.
I’ll choose Ethereum over Bitcoin here.
Much more potential. pic.twitter.com/yN6LLP1NPQ— Crypto Rover (@rovercrc) February 2, 2025
So, how high can it actually go this year and next?
If the US establishes a Bitcoin reserve, this could propel the BTC price as much as 2x higher from current levels.
This could have a ripple effect across the broader ecosystem, providing a significant boost to Ethereum’s price.
New all-time highs above $5,000 seem quite possible.
However, it is when financial conditions begin to ease significantly, and the DXY starts to decline, that ETH would truly gain momentum.
If there is a substantial easing of financial conditions over the next year or so, the overall crypto market cap could expand to at least $10-15 trillion from its current $3.25 trillion.
Under this scenario, assuming ETH maintains its current dominance levels relative to the rest of the market, an Ethereum price of $10,000 could be very plausible.
The post Ethereum Price Set to Skyrocket With Staked ETH ETFs on the Horizon – $10k Possible? appeared first on Cryptonews.
