Key Notes
- Grayscale is pushing the SEC to allow ETH staking, unlocking millions in missed rewards.
- Massive ETH inflows into exchange Binance sparked fears of a new wave of selling pressure.
- ETH could target $2,000 in the near future as Buterin unveiled massive upgrades for ETH.
The representatives from Grayscale Investments met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force on April 21 to advocate for allowing staking within Ethereum exchange-traded products (ETPs).
Grayscale proposed amendments to its Form 19b-4 filings for both the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH), aiming to enable staking activities.
Grayscale met with the U.S. SEC’s Cryptocurrency Task Force on April 21 to apply for amendments to its 19b-4 Form filings for the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) to allow the relevant funds to participate in staking activities.…
— Wu Blockchain (@WuBlockchain) April 28, 2025
Urgent Need to Modernize Regulations
Craig Salm, Grayscale’s chief legal officer, emphasized the urgent need to modernize regulations, saying:
“Currently, spot ETH ETPs do not represent the underlying ETH completely, because they are not currently permitted to engage in staking.”
Grayscale pointed out that US ETH ETPs have missed out on approximately $61 million in potential staking rewards since launch, weakening their competitive edge against international counterparts.
In their argument, staking would not only enhance returns for shareholders but also contribute to the security and efficiency of the Ethereum network.
Large Exchange Inflows Signal Caution
According to analyst Amr Taha on CryptoQuant, over 92,000 ETH, worth roughly $165 million, was deposited into Binance on April 24.
Historically, large ETH inflows into exchanges, particularly Binance, have often preceded price corrections as whales look to realize profits or exit positions.
This massive Ethereum movement followed closely on the heels of a $500 million Bitcoin transfer to exchanges on April 23, hinting at possible coordinated de-risking moves by large holders.
Scalability Battle: Buterin vs. Hoskinson
Cardano founder Charles Hoskinson recently warned that “Layer-2’s are sucking out all the alpha for ETH,” predicting ETH could fall within 15 years if it becomes overly dependent on external scaling solutions like Arbitrum and Optimism.
In a timely response, Ethereum co-founder Vitalik Buterin highlighted major research advancements toward Layer-Zero scalability.
Through reposts from LayerZero Labs and Succinct Labs, Buterin outlined a vision to replace the traditional Ethereum Virtual Machine (EVM) with a zkVM built on RISC-V standards. This change promises transformative upgrades, including:
- Up to 832× fewer cycles than current EVM processing
- 95.7% reduction in proving cycles via precompiles
- 30× higher throughput with GPU acceleration
- Proof size compression from 346MB to 1.5MB
ETH Price Analysis and Outlook
Looking at the Ethereum
ETH
$1 811
24h volatility:
0.1%
Market cap:
$218.58 B
Vol. 24h:
$10.01 B
daily chart you provided, it is clear that the RSI is currently at 54.89, slightly above neutral, suggesting mild bullish momentum.
Bollinger Bands are widening, hinting at an incoming volatility expansion while price has pushed above the 20-day moving average (around $1,662), currently trading around $1,796.
Ethereum Price Chart | Source: TradingView
If momentum holds and no major sell-offs occur, ETH could test the upper Bollinger Band near $1,850, and potentially break toward psychological resistance at $1,900–$1,920. A successful daily close above $1,920 could open the path to $2,050 in the medium term.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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