In May, Ethereum (ETH) saw an impressive 27% price increase, with most gains occurring in the final ten days after the spot Ethereum ETF got the green light. As ETH stabilizes around $3,800, on-chain activity points to potential further price rises.

Growing Interest from Ethereum Whales and Institutions

According to CryptoQuant, more than 800,000 Ethereum coins have been moved from exchanges in the last ten days since the spot Ethereum ETF approval on May 23. This activity suggests that large investors, like whales or institutions, are preparing for the ETF’s trading debut. This movement of ETH to self-custody indicates bullish sentiment, as a reduced exchange supply typically leads to fewer coins available for sale. Currently, only 10.6% of Ethereum’s total supply is on exchanges, the lowest in many years.

Additionally, data from the beacon chain shows a resurgence in Ethereum staking since May 30. Following a three-day withdrawal period that saw the total staked ETH drop to a weekly low of 32,193,980, staking deposits surged by 175,358 ETH in just the past 72 hours. At current prices, these newly staked coins are worth around $661 million.

ETH Price Targeting New Highs

After experiencing a sell-off last week, Ethereum’s price has maintained strong support at $3,750 and faces resistance at $3,830. Surpassing this resistance could push ETH above $4,000, potentially reaching new all-time highs. Bloomberg’s ETF analyst Eric Balchunas mentioned that a spot Ethereum ETF approval by the end of June is a real possibility. Some analysts believe that if the ETF launches, ETH could exceed its previous peak of $4,870, driven by increased demand similar to the Bitcoin ETF launch. However, others predict the Ethereum ETF might attract only 20% of the inflows seen by spot Bitcoin ETFs.

There are also concerns about Grayscale’s Ethereum Trust (ETHE). With over $11 billion in assets, if ETHE converts to a spot Ethereum ETF, it might face outflows similar to the Grayscale Bitcoin Trust (GBTC).

In conclusion, Ethereum’s price could see significant gains this month, supported by strong institutional interest and staking activity. The potential approval of a spot Ethereum ETF adds to the bullish outlook, although some uncertainties remain.