Ethereum Breaks Above $1,800 on Major Rollup Upgrades and ETF Demand – Is a New Bull Run Unfolding for ETH-USD?

Ethereum’s ETH-USD Climbs Amid Institutional Inflows

Ethereum has held its ground above the critical $1,800 mark since Friday’s trading session, propelled by a renewed wave of institutional demand. On Monday morning, ETH-USD changed hands near $1,820 on major venues, up almost 5% from last week’s lows after BlackRock disclosed a purchase of over 15,000 ETH—around $48 million worth—on April 27, according to on-chain data. That single transaction helped lift ETH’s spot trading volume by 28% to $12.3 billion over 24 hours, underscoring how heavyweights can trigger sharp rallies in an otherwise muted market. At the same time, total assets under management in U.S. spot Ethereum ETFs have swelled to about $33 billion, nearly doubling flows from January to April and marking a faster absorption rate than Bitcoin ETFs saw in their first year.

Scaling Up Rollups and Staking Drive Network Demand

The network’s technical evolution has paralleled its price resilience. Last month’s “proto-danksharding” upgrade slashed Layer-2 data fees by up to 90%, fueling a 30% year-to-date climb in rollup transaction throughput, which now accounts for roughly 70 TPS compared with Ethereum main-chain’s 15 TPS. Meanwhile, the restaking market on EigenLayer surpassed $15 billion in TVL, letting staked ETH earn extra yield by securing third-party services. That dynamic has lifted daily staking inflows by 8%, pushing total staked ETH on the Beacon Chain above 32 million tokens—about 27% of circulating supply. A rising staking ratio not only deflates the available float but also strengthens the network’s security, with unrealized staking rewards exceeding $60 million in Q1 alone.

Technical Outlook for ETH-USD

From a chart perspective, Ethereum broke decisively above its 50-day EMA at $1,780 on April 27, confirming a short-term reversal of the prior downtrend. The RSI on the daily frame stands at 62, comfortably in bullish territory without signaling overbought extremes. On the hourly scale, a symmetrical triangle resolved to the upside at $1,800, triggering follow-through to test resistance at $1,850. A sustained breach of that level could open the door toward $1,920, the 200-day EMA. On the downside, immediate support resides at $1,750, backed by the 100-hour EMA, and a drop below $1,720 would expose the next floor at $1,700.

DeFi and NFT Activity Underpin Value

Ethereum’s DeFi ecosystem remains the largest, with $47 billion locked across lending, DEXs and derivatives platforms. That total is up 12% since the start of April, driven by renewed interest in borrowing against staked ETH at sub-5% rates. NFT volumes on Ethereum have softened 24% year-to-date amid “utility fatigue,” yet blue-chip collections like .SWOOSH and Otherside continue to report healthy secondary sales, accounting for a combined $120 million in weekly turnover. That on-chain demand sustains gas fees near $8 on average, underscoring the network’s ongoing utility.

Regulatory and Macro Developments Loom

Looking ahead, Europe’s MiCA regulations already classify exchanges servicing EU wallet holders as CASPs, raising compliance costs but offering legal clarity. In the U.S., the SEC delayed its decision on spot-ETH ETF staking until June 1, reflecting the incoming chair’s more crypto-friendly stance. Geopolitically, U.S. 10-year Treasury yields have oscillated between 3.9% and 4.6% this month amid tariff rhetoric, and historically a one-percentage-point yield drop has coincided with a 35% ETH rally. The next Federal Reserve statement in early June and the outcome of the U.S. debt-ceiling talks could inject fresh volatility.

Price Catalysts and Risks

Key catalysts for a further upswing include successful deployment of the upcoming Pectra upgrade, which will enable sub-five-second finality and fast-withdrawal credentials for stakers, and CME’s long-teased launch of physically settled ETH futures. On the flip side, a major cross-chain bridge exploit—recall the $1.5 billion Bybit hack in February—could undermine trust, as could an unexpected SEC ruling reclassifying staking income as unregistered securities. Competition from Solana, whose Firedancer upgrade promises 100,000 TPS, also looms unless Ethereum rollups continue to narrow the UX gap.

Trade Call: Buy, Hold or Sell?

Given the confluence of robust technicals, rising on-chain demand from rollups and staking, and a growing institutional footprint via spot ETFs, ETH-USD appears poised for further upside toward $2,000 and potentially $2,500 by year-end. The improved staking ratio and ETF inflows suggest diminished selling pressure, while the RSI’s balanced reading leaves room for expansion. Prudent traders should consider a buy on dips to $1,750 with a stop-loss beneath $1,720, while booking partial profits near $1,920. Longer-term holders betting on Ethereum’s continued scaling and regulatory maturation can maintain a bullish stance, though they should size positions to weather up to 30% drawdowns should macro headwinds intensify. Overall, the data and price action align in favor of a buy recommendation on ETH-USD.

That's TradingNEWS