Ethereum stakers are back in profit! - Will this fuel ETH’s rally?

Ethereum

Ethereum stakers are back in profit! – Will this fuel ETHs rally？

Ethereums [ETH] back in the green – and so is validator sentiment. For the first time since March, staked ETH is showing unrealized gains, a comeback in on-chain confidence.

But this isn‘t just a blip on the charts; it may be the early beginning of a broader shift in Ethereum’s value capture story.

With the network keeping an eye on L2 scaling incentives and application migration risks, the networks economic foundation could be on the cusp of something huge.

Staked ETH returns to profit

A recent CryptoQuant report has revealed that Ethereum stakers are back in the green after more than two months of unrealized losses.

Since March, staked ETH had been underwater, with the realized price sitting above market levels. However, on the 9th of May, ETH crossed the $2297 mark, surpassing the realized price of – flipping stakers back into profit territory.

This recovery strengthens Ethereums network stability by reassuring validators and staking participants. As profit returns to stakers, it could be a sign of a larger bullish shift across the Ethereum ecosystem.

Ethereum as the biggest on-chain economy

Ethereum continues to dominate as the largest on-chain economy, with over $213.9 billion in TVL across lending, staking, and other sectors.

This expansive activity shows Ethereums unmatched developer base and DeFi infrastructure, attracting the highest volume of app deployment and usage.

Source: X

However, the dominance isnt without risk.

Incentives tied to scalability and app success create a real threat of app migration – especially to competing chains.

Ethereums new leadership has acknowledged these graduation risks and are reportedly working toward strategies that ensure value retention as apps evolve and expand.

Price momentum builds

ETHs recent breakout pushed it above $2,550 at press time, marking a strong bullish continuation.

Technicals supported the rally – the RSI was at 80.58, indicating strong momentum but perhaps the asset is entering overbought territory.

Meanwhile, the MACD showed a widening gap between the MACD and signal lines, a bullish signal reflecting increased buying pressure.

Source: TradingView

With volume holding steady and sentiment turning optimistic post-staking profit recovery, Ethereums price may test higher resistances. However, overextension could lead to a brief consolidation before the next leg up.