TLDR
- Staked ETH has returned to profit for the first time since March 2025
- ETH price has surged over 40% in the past two weeks, reaching $2,555
- The current rally appears to be driven by spot market demand rather than leveraged trading
- ETH broke through the $2,297 mark on May 9, surpassing the realized price
- Ethereum maintains its position as the largest on-chain economy with over $213.9 billion in TVL
Ethereum’s price has been on an upward trajectory, breaking through the $2,550 mark as staked ETH returns to profit for the first time in over two months. This price movement has caught the attention of investors and analysts alike, with many seeing it as a sign of renewed confidence in the second-largest cryptocurrency.
The recent CryptoQuant report revealed that Ethereum stakers are finally back in the green after experiencing unrealized losses since March. On May 9, ETH crossed the $2,297 threshold, surpassing the realized price and flipping stakers back into profit territory.
This development is more than just a price milestone. It represents a major boost for validator confidence and overall network sentiment. When stakers see profits, it tends to strengthen Ethereum’s network stability by reassuring validators and participants in the staking ecosystem.
Spot-Driven Rally Shows Healthy Growth
What makes this current ETH rally stand out is the nature of its momentum. According to CryptoQuant analyst ShayanMarkets, the present uptrend appears to be primarily driven by spot market demand rather than speculative futures trading.
A key indicator supporting this view is that ETH funding rates have remained relatively flat despite the substantial price surge. Funding rates typically reflect sentiment in the perpetual futures market, with positive rates indicating bullish sentiment and negative rates suggesting bearish sentiment.
The flat funding rates during ETH’s recent price action suggest that genuine buying in the spot market, not leveraged speculation, is powering this upward movement. This makes the current trend less vulnerable to sudden reversals caused by mass liquidations.
ETH has surged over 40% in the past two weeks, trading at $2,555 at the time of writing. This represents a 3% increase in the past 24 hours alone.
For the bullish momentum to continue and be validated, analysts suggest that funding rates should begin to rise, reflecting increased confidence and more aggressive positioning by futures traders.
Technical indicators are also supporting the rally. The Relative Strength Index (RSI) sits at 80.58, indicating strong momentum, though it may suggest the asset is entering overbought territory. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a widening gap between the MACD and signal lines, a bullish signal reflecting increased buying pressure.
Crypto analyst Ali Martinez has remarked that if ETH can decisively break through the $2,380 resistance level, it could enter a new bull rally. Martinez emphasized that ETH’s new critical support range lies between $2,060 and $2,420, with close to 10 million wallets holding more than 69 million ETH between these levels.
#Ethereum $ETH moved past resistance. Send it! 🚀 https://t.co/fr0shbzReo
— Ali (@ali_charts) May 11, 2025
Ethereum’s Dominant Position
Ethereum continues to maintain its status as the largest on-chain economy, with over $213.9 billion in Total Value Locked (TVL) across lending, staking, and other sectors. This extensive activity demonstrates Ethereum’s unmatched developer base and DeFi infrastructure, which attracts the highest volume of app deployment and usage.
However, this dominance isn’t without challenges. Incentives tied to scalability and app success create a real risk of app migration to competing chains. Ethereum’s leadership has acknowledged these graduation risks and is reportedly working toward strategies to ensure value retention as applications evolve and expand.
Despite remaining well below its all-time high of $4,878 reached in November 2021, many market watchers believe a new all-time high for Ethereum could be on the horizon. Some analysts are even more optimistic, with predictions of ETH reaching $12,000 in 2025, citing favorable regulatory developments and strong inflows into spot exchange-traded funds (ETFs).
#Ethereum V-Shape Recovery Has Begun 🚀#ETH just kicked off a sharp reversal , a classic V-shape structure in the making. pic.twitter.com/vbVmQDsAHY
— Titan of Crypto (@Washigorira) May 11, 2025
The recent price breakout pushed ETH above $2,550, marking a strong bullish continuation. With volume holding steady and sentiment turning optimistic following the staking profit recovery, Ethereum’s price may test higher resistances soon.
At press time, ETH trades at $2,555, showing continued upward momentum as stakers enjoy their return to profitability.
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