Ethereum +40% in a Week: Staking Profitable Again

The second-largest cryptocurrency by market capitalisation, Ethereum, has seen a notable price increase over the past week, appreciating 40%, marking one of the best weekly performances in recent times.

This surge has also had a significant impact on ETH staking, which has returned to the profit zone for the first time since early March.

ETH Staking Returns to Profitability Thanks to Market Sentiment

According to CryptoQuant data, ETH staking-typically held by long-term investors and validators out of circulation-has been in unrealised losses since March 3, 2025. At that time, the value of staking was $2,279, while Ethereum's market price had fallen below that threshold.

However, the recent rally completely reversed the situation. On 9 May, the price of ETH rose above $2,279, bringing the staked coins back into unrealised gains. This could be a bullish signal for the Ethereum network, as it reduces selling pressure.

Whenever staked coins return to profit, it usually increases the confidence of holders to hold their positions instead of liquidating them, thus reinforcing the stability of the network.

Strengthening the optimism is also Ethereum's current funding rate on the derivatives market, which stands at 0.001%. A positive funding rate indicates that futures traders are willing to pay a premium to maintain long positions, signalling a high level of confidence in the market and contributing to the recent positive price momentum.

Strong volumes suggest further growth potential

Ethereum's rally is also supported by higher volumes. The on-balance volume (OBV)-a key momentum indicator-rose to 26.05 million, indicating continued buying interest. When OBV rises along with price, it usually indicates accelerating buying pressure, which in turn pushes the price up.

In the long term, if the buying trend persists, the price of Ethereum could reach $2,745. Otherwise, if bearish pressure prevails, ETH could fall to $2,424.

If it fails to hold the support level, the price could drop to around $2,243.

With both on-chain and derivative data indicating positive market sentiment, Ethereum looks set to perform even better-as long as bullish momentum holds. The return to profitability of ETH staking could further incentivise long-term holding and discourage short-term selling.