Gate.io Blog Will Ethereum (ETH) Boost Above $2,000

Will Ethereum (ETH) Boost Above $2,000

03 July 12:22

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![](https://gimg2.gateimg.com/image/article/1688357706SDFX.jpeg)

## TL; DR

The increase in the quantity of staked ETH has resulted in ETH’s stable price.

During the second week of June ETH consolidated its position around $1,750.

There is a consistent demand for ETH since <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> traders aim to stake more coins.

The market anticipates the value of ETH to rise towards $2,000 in June.

## Introduction

There has been vibrant talk about Ethereum staking following the launch of the EigenLayer Protocol that enables crypto investors to restake their ETH. The fact that staking is one of the best investment opportunities during a depressed crypto market shows how relevant it is during the current period. This article discusses the current state of Ethereum staking, its prospect and possible impact on the entire crypto market.

## Ethereum Staking Activity Rising

Ethereum staking has been on the rise during 2023 following several developments such as [the Shapella Upgrade](https://www.gate.io/blog_detail/2413/gate.io-market-watch-shapella-may-push-defi-innovation "the Shapella Upgrade") which was launched a few months ago. In fact, the goal of this upgrade is to boost staking of ETH which has a positive influence on its price.

Data on Nansen, an on-chain analytics firm, shows that the amount of [staked ETH](https://www.gate.io/blog_detail/2135/market-trend-rocket-pools-eth-staking-service-reaches-dollar1b-tvl "staked ETH") has increased significantly in the second quarter of 2023. It indicates that close to $23 million worth of ETH was staked after the launch of the Shapella upgrade. This amounts to about 18% increase within a period of one month. The following diagram shows the increase in staked ETH since April.

![](https://gimg2.gateimg.com/image/article/1688357896unnamed (3).png)
Increase in Staked ETH - [Nansen](https://query.nansen.ai/public/dashboards/Hk93n66vsO0uvycfui8ypF2xcpNhpraxfwX5AWZJ?utm_campaign=shanghaiupgrade_12apr23&utm_medium=social&utm_source=twitter "Nansen")

As the image shows the volume of staked ETH continues to rise since April. In addition, according to Glassnode’s Supply in Smart Contracts metric, a tool that measures [Ethereum staking activities](https://www.gate.io/learn/articles/how-to-stake-eth/209 "Ethereum staking activities") across various protocols by tracking the percentage of ETH in circulation, 360,000 ETH coins were staked between 1 and 12 June on various DeFi smart contracts and the Ethereum Beacon chain.

## Effect of an increase in staked ETH on its price

If most ETH investors stake their coins for a long period that acts as a deflationary measure. This is because an increase in the amount of staked ETH reduces the volume of circulating coins, something that is  likely to lead to a positive ETH price action.

If ETH attains a staking participation rate of 60-70%, which other proof-of-stake layer-1 blockchain [like Cardano have](https://www.gate.io/blog_detail/2210/cardano-ada-what-is-it-and-how-does-it-differ-from-bitcoin "like Cardano have"), it means that there will be around 50-60 million unstaked ETH tokens. That could reduce the amount of ETH on exchanges significantly. This would also decrease the ETH available for other uses such as gas fees and other purposes within decentralized applications (dApps). This would be a possible ETH price tailwind in the medium to long term.

The reduction in ETH’s circulating supply due to staking and burnt mechanism as well as fall in ETH issuance rate as a result of the Merge, which transitioned the Ethereum blockchain from the proof of work consensus mechanism to the proof-of-stake one, will likely lead to its sustained upward price movement. Already, according to recent statistics the ETH supply is currently dropping by about 1.5% per annum.

## Crypto Traders Lining Up to Acquire Ethereum (ETH)

Crypto order books show that the ETH market is bullish as many ETH traders are [piling buy Ethereum orders](https://www.gate.io/how-to-buy/ethereum-eth "piling buy Ethereum orders"). Specifically, the on-chain statistics shows that ETH traders have recently placed orders to purchase 137,000 ETH coins while there was 122,000 ETH for sale, showing a deficit of 15,000.

Basically, ETH owners are unwilling to sell their coins at the prevailing market price as they expect its value to rise in the future. They want to lock their coins in order to earn yield. The anticipated pause of the Federal Rate is giving the market reason to hold on to their cryptocurrency. As we know, the United States was expected to announce the Fed rate on 14 June.

## Can the Fed Rate Propel Ethereum above $2,000?

Right away, the crypto market is waiting to see the impact of the new Fed Rate on prices of various cryptocurrencies and other crypto related investment assets.

Despite the high market turbulence emanating from the US Securities and Exchange Commission’s (SEC) [lawsuit against](https://www.gate.io/blog_detail/2448/cz-sued-cftu-another-turn-crypto-saga "lawsuit against") Binance and Coinbase, ETH consolidated its position around $1,750 during the second week of June.

The analysis of on-chain data indicates that the increase in ETH staking helped it to avoid a downward price retracement. In general, ETH has been resilient to the recent upheavals in the crypto market which led other cryptocurrencies to shed off much value.

Read also: [What Is Ethereum 2.0? Understanding The Merge](https://www.gate.io/learn/articles/what-is-ethereum-2-0/102 "What Is Ethereum 2.0? Understanding The Merge")

## Ethereum Price Prediction

The anticipated Fed Rate announcement will affect the price for Ethereum. If there is a US Fed rate pause, we are likely to see an <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum price</a> rise towards $2,000. Nevertheless, that is only possible if ETH passes $1,850 which is the initial and critical resistance level.

Based on IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data, some analysts believe that the 3.38 million investors who acquired 10.97 million ETH at an average price of $1,835 are the ones that are likely to trigger a pullback. The next image summarizes the data upon which the prediction is based.

![](https://gimg2.gateimg.com/image/article/1688358017unnamed (4).png)
Ethereum (ETH) Price Prediction, June 2023, IOMAP - 
[IntoTheBlock](https://app.intotheblock.com/coin/ETH/deep-dive?group=financials&chart=inAndOut "IntoTheBlock")

However, strong bearish pressure may invalidate the ETH bulls’ recovery momentum. That is most likely to occur if the ETH price falls below the $1,700 support level. Nonetheless, the 1.23 million ETH investors who bought around 1.79 million ETH at the minimum price of $1,700 may prevent its value from falling further.

In the worst scenario, if its price drops below $1,700 there may be an ETH crash as its value is likely to retrace towards $1,595.

## Conclusion

The rise in volume of staked ETH has prevented any significant fall in the value of the coin despite the current turbulence in the crypto market. As a result, the ETH price has been fluctuating around $1.750. However, there is a high possibility for the Ethereum price to rise above $1,850 and move towards $2,000.

## FAQs on Ethereum

**How high can Ethereum go?**

Ethereum is expected to reach $2,758 in 2023 if the market remains bullish. However, the price of ETH may rise to $100,000 by 2035.

**Is it a good period to <a href="/how-to-buy/ethereum-eth" target="_blank" class="blog_inner_link">buy Ethereum</a>?**

Many analysts believe that this is a good period to buy and hold Ethereum since its price is expected to rise if its deflationary pressure continues. The rise in the quantity of staked ETH will reduce its circulatory supply which may push its price up.

**How high can Ethereum go in 2023?**

The value of Ethereum may reach $2,758 in 2023 if its demand continues to increase. However, if factors like rising Fed Rate and increased crack down on cryptocurrency activities in the United States continue, its year end price may fall below  $2,758. Read also ETH forecasts for 2023, 2025 and 2030

**Can Ethereum crash to zero? **

Ethereum is unlikely to crash to zero if it is still listed on various exchanges. It may crash to zero if it is delisted from all cryptocurrency exchanges.

**How to buy ETH on Gate.io?**

In order to buy ETH on Gate.io exchange, open and verify your account. Once you do that visit the “Buy Crypto” section where you pay using credit card, P2P trading or wire transfer.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

BTC/USDT + 1.85%

ETH/USDT + 4.20%

GT/USDT -0.08%

TL；DR

Introduction

Ethereum Staking Activity Rising

Effect of an increase in staked ETH on its price

Crypto Traders Lining Up to Acquire Ethereum _ETH_

Can the Fed Rate Propel Ethereum above $2,000?

Ethereum Price Prediction

Conclusion

FAQs on Ethereum

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