Ethereum has been on a remarkable journey in recent weeks, mirroring the broader crypto market rally with renewed momentum. The second-largest cryptocurrency by market capitalization has surged by 38.2% in the past week, currently trading above $2,400. This upward trajectory has seen Ethereum closing in on its all-time high of $4,878, which was achieved in 2021.
The recent surge in Ethereum’s price has positioned it alongside Bitcoin and other major cryptocurrencies, benefitting from a resurgence in market confidence. On-chain activity for Ethereum has also been reflecting these price movements, particularly among Ethereum stakers. Data shared by CryptoQuant contributor Carmelo Alemán indicates that Ethereum stakers have returned to a state of unrealized profits after a period of holding at a loss. This shift could potentially influence the next phase of Ethereum’s market dynamics as staking participants regain confidence in the network’s long-term prospects.
Alemán delves into the concept of Realized Price and stakeholder sentiment in his analysis. Staked tokens operate differently from regular circulating supply, remaining relatively static and excluded from metrics that rely on liquidity or transfer activity. The Realized Price, which calculates the average acquisition cost of a specific cohort, has been a key metric for understanding the dynamics of Ethereum stakers. Following a period of operating under unrealized losses, Ethereum stakers returned to profitability on May 9, 2025, when the market price of ETH exceeded $2,297. This development has significant implications as it could reduce selling pressure and bolster the confidence of validators and long-term holders who support Ethereum’s proof-of-stake consensus model.
The return to profitability among Ethereum stakers could have broader positive implications for the network. Staked ETH is not only held by individuals seeking yield but also plays a vital role in maintaining Ethereum’s network security through validator participation. The renewed profitability may encourage new staking activity while discouraging premature withdrawals or profit-taking, thereby stabilizing the supply side of the market.
Institutions and participants in Layer 2 protocols may interpret this trend as a bullish indicator for Ethereum’s future trajectory. Alemán highlights the potential for new waves of accumulation and participation in the network, enhancing its security and long-term stability. If Ethereum continues its upward trend, we could be witnessing the start of a new bullish cycle for Ethereum and its key stakeholders, including L2 solutions and other ecosystem players.
In conclusion, Ethereum’s recent price surge and the return to profitability among stakers signal a positive outlook for the network. As Ethereum continues to attract interest and support, it may pave the way for further growth and stability in the ecosystem.