Staking Soars, Leverage Plummets: What's Next for Ethereum?

Ethereum is experiencing a transition from leverage trading to more robust staking inflows. The estimated leverage ratio (ELR) fell from 0.75 to 0.69 in early May 2025, showing fewer leveraged positions, and over 180,000 ETH has been staked and around 323,700 ETH has left exchanges, much of which has been deposited into staking protocols. This is a sign that there is desire to hold and gain yield through staking long-term rather than short-term speculation.

The existing trend in ETH is fueled by fundamental spot market demand, supported by the successful rollout of Ethereum's Pectra upgrade and ETFS of ETH with staking features pending approval. Such a transition lowers systemic risk, enhances security within the network, and can lower circulating supply on exchanges for ETH, supporting potential price strength

 It hit an intraday low of $2420 and is currently trading around $2520.

Overall trend remains bullish  as long as support $2000 remains intact. The key near-term resistance is at $2625 any breach above targets $2770/$3000/$3400/$3600/$3800/$4000. A robust bullish trend will only materialize above $4100.

Immediate support is around $2420. Any violation below will drag the price down to $2270/$2173/$2000/$1750/$1675/$1620/$1500/$1200/$1000. A breach below $1000 could see Ethereum plummet to $800/$500.

It is good to buy on dips around $2428-30 with SL around $2270 for a TP of $3000/$4000.