Ethereum Price Analysis:

Ethereum’s price rebounded 5% from its weekly lows to reclaim the $3,400 level on June 30.However, ETH 2.0 staking trends show how new investors have started trooping into the ecosystem ahead of the impending ETF launch.

60,000 New Depositors Have Joined Ethereum 2.0 Staking Network Since ETF Approval 

ETH bulls had fiercely defended the $3,350 territory since the ongoing market correction phase began around June 7. But on Monday, that critical support level caved as ETH tumbled to a 35-day low, while Bitcoin also fell below $60,000 for the first time in 50-days, triggering intense market volatility.

But, looking beyond the volatile short-term price action, recent on-chain data trends suggest investors’ bullish reaction to the Ethereum ETF approval over the past month, a move that could trigger accelerated bullish activity in the coming weeks.

The CryptoQuant chart below monitors real-time changes in the number of unique depositor addresses on the ETH 2.0 beacon chain staking network. For any Proof of Stake (PoS) network, an increase in the number of depositors is analogous to greater decentralization, network depth, and an increased number of coins locked up and temporarily taken out of the short-term market supply.

As seen above, there were 1,375,981 unique depositors on the ETH 2.0 staking network at the close of May 19. But since Bloomberg analysts announced a “75% chance” of the SEC’s approval verdict on May 20, there has been an unusual and persistent increase in the number of new depositors.

Since then, 59,894 depositors have staked their coins on the ETH 2.0 beacon chain contracts, bringing the total number of unique staker wallets to 1,435,875 addresses at the time of publication on June 30

This implies that there has been a 4.35% increase in the Ethereum 2.0 staking participation rate between May 20 and June 30, driven by the ETH ETF approval.

Experts Raise Concerns Over Regulatory Implications of Ethereum ETF Staking 

Meanwhile, amid growing optimism that Ethereum’s yield-bearing mechanism could trigger a major supply crunch as ETFs begin staking their own deposits, Jonathan Solomon, Co-Founder and Co-CEO of ARIA (Algorithmic Rating Investment Analysis), called for caution, citing regulatory hiccups ahead.

“The possibility of investors receiving additional yields from ETH ETFs hinges more on regulatory approvals and frameworks than on asset managers’ willingness. With the competitive landscape evidenced by multiple applications for both Bitcoin and Ethereum Spot ETFs, it’s conceivable that asset managers might leverage staking yields as a competitive advantage. The primary obstacle, however, remains the unclear regulatory environment present.”

Still, the 4% surge in staking participation within just over 30 days could have a bullish impact on ETH’s mid to long-term price prospects for a number of reasons.

Firstly, the increase in the number of unique depositors indicates growing confidence in Ethereum’s network upgrade and its future potential. This could encourage strategic investors on the sidelines to enter bullish positions on ETH.

Moreover, as users stake their coins, it reduces the circulating supply of ETH. Combined with the potential demand surge from institutional ETF investors, Ethereum’s price appears well-poised for an accelerated breakout toward the $4,000 territory in the days ahead.