Ethereum is catching up to the broader crypto market rally with fresh momentum, surging 38.2% over the past week and trading above $2,400 at the time of writing. As the second-largest cryptocurrency by market cap continues its upward trend, the price gap between current levels and its all-time high of $4,878, set in 2021, is narrowing fast.
While price action alone is cause for excitement, what’s happening beneath the surface is just as significant. On-chain data reveals that Ethereum stakers have returned to a state of unrealized profits for the first time since early March. This renewed profitability could significantly impact Ethereum’s long-term market dynamics and ecosystem stability.
From Red to Green: A Shift in Staking Sentiment
CryptoQuant contributor Carmelo Alemán shared new data confirming that Ethereum stakers are finally back in the green. After holding at a loss for over two months, the market price of ETH climbed to $2,297 on May 9, overtaking the staked ETH Realized Price of $2,276.
The Realized Price metric measures the average acquisition cost of staked Ethereum—a figure that remained above spot prices since March 3, 2025, when ETH dipped as low as $2,149. Because staked tokens are mostly illiquid and locked within the network’s consensus system, this return to profitability is particularly important. It reflects a renewed sense of confidence among validators and long-term holders.
What This Means for Ethereum’s Future
Ethereum operates on a proof-of-stake consensus model, where the security and stability of the network rely heavily on validator participation and staked ETH. With prices now above cost basis for many stakers, selling pressure is likely to decrease, while staking participation could increase, further reinforcing the network’s robustness.
According to Alemán, this shift is not just symbolic, it has practical implications. “Staked ETH is not only held by individuals seeking yield,” he explains, “but also plays a critical role in maintaining Ethereum’s network security.”
This development could trigger a new wave of accumulation, both from retail investors and institutional players. Moreover, it may encourage Layer 2 protocols and infrastructure providers to double down on their Ethereum strategies, particularly if the uptrend continues.
The Start of a New Bull Cycle?
The on-chain pivot from unrealized losses to gains often signals the start of a new market phase. With Ethereum’s fundamentals improving, institutional confidence rising, and on-chain profitability returning, the stage may be set for ETH’s next bullish cycle.
If current momentum holds, Ethereum may not only reclaim its previous highs it could redefine its role as the core of decentralized finance, staking, and Layer 2 scalability.
