TLDR
- SEC delayed decision on Grayscale’s ETH ETF staking applications until June 1, 2025
- ETH price at $1,640, up 2% on Monday, testing key descending trendline resistance
- Whale activity has decreased, with large transaction volume dropping from $9.81B to $2.75B
- Vitalik Buterin emphasizes need for “good social philosophy” in Ethereum app development
- Inverse ETH ETFs among best-performing ETFs in 2025 with YTD returns over 140%
Ethereum’s price has been showing signs of recovery after touching lows not seen since March 2023. Currently trading at $1,640, ETH has bounced back from the key $1,500 support level, gaining about 2% on Monday.
Despite this uptick, several factors are influencing its price trajectory, including regulatory decisions, changing investor sentiment, and comments from its co-founder.
The Securities and Exchange Commission (SEC) recently postponed its decision on Grayscale’s application to permit staking in its spot Ether ETF products.
The regulator has extended the decision deadline to June 1, 2025, stating it needs “sufficient time to consider the proposed rule change and the issues raised therein.”
Many market observers view this delay as standard procedure until Paul Atkins, President Trump’s nominee for SEC Chair who has shown support for digital assets, takes office. The Senate approved Atkins’ nomination last week, and he will begin his duties after Trump signs his confirmation.
Several ETF issuers had initially included staking features in their spot ETH ETF applications but removed them before launching as the regulator wasn’t comfortable with the concept. However, with former SEC Chair Gary Gensler’s resignation in January, the agency may have changed its stance on such applications.
ETH Technical Analysis
Ethereum is currently testing a key descending trendline resistance that has been in place since March 25. A failure to break above this level could strengthen its resistance and potentially trigger increased sell orders when ETH’s price approaches it again. Such a scenario might push ETH back to test the $1,522 support level.
The technical indicators present a mixed picture. The Relative Strength Index (RSI) and Stochastic Oscillator are aiming to test their neutral level lines. A firm crossover to the upper side would indicate rising bullish momentum.
Ethereum experienced $77.86 million in futures liquidations in the past 24 hours. The total amount of long and short liquidations stands at $43.16 million and $34.69 million, respectively.
The moving averages are pointing upward, which suggests buyers currently have the advantage. If they can keep the price above the descending resistance line, ETH might move toward the important $2,000 level in the coming days.
Waning Institutional Interest
Data indicates a decline in interest from wealthy investors. According to Glassnode, the number of wallets holding at least $1 million worth of ETH has dropped to the lowest level since January 2023.
Large transaction volume has fallen from a peak of $9.81 billion to just $2.75 billion, showing decreased activity from big investors. Recent on-chain activity supports this trend—on April 14, a whale moved 20,000 ETH (worth about $32.4 million) to the Kraken exchange, likely preparing to sell.
Adding to the pressure, an early investor from Ethereum’s 2015 ICO has been consistently selling. On April 13, this whale sold 632 ETH, worth around $1 million.
Ethereum’s open interest (the total value of outstanding derivatives contracts) has dropped by 1.16%, now at approximately $17.91 billion. This decline could slow down ETH’s recovery and increase the chances of a short-term pullback.
In contrast to ETH’s struggles, two leveraged ETFs tracking twice the inverse of ETH’s price — T-Rex 2X Inverse Ether Daily Target (ETQ) and ProShares UltraShort Ether (ETHD) — are among the best-performing ETFs globally in 2025, with year-to-date returns of 148% and 162%, respectively.
According to analysts from Standard Chartered and Sygnum, approval of staking features in ETH ETFs could boost inflows into these funds and potentially trigger a rally in the cryptocurrency’s price.
