Ethereum (ETH) has been consolidating around $3,800 levels, but on-chain developments suggest a major price boost is imminent. Analysts expect the spot Ethereum ETF to go live for trading by June end, which could lead to strong demand pressure driving the ETH price to $5,000 and beyond.

Growing Institutional Interest

Data from CryptoQuant shows that over 800,000 Ethereum coins have moved off exchanges in the last ten days, indicating that whales or institutions are preparing for the spot Ethereum ETF to go live. This lower exchange supply is a bullish indicator since fewer coins would be available for selling. Additionally, the percentage of Ethereum supply at the exchange has dropped to the lowest in many years, currently at 10.6%.

Staking Activity on the Rise

The beacon-chain data shows that Ethereum staking activity has picked up pace again since May 30. In the past 72 hours alone, staking deposits on the beacon chain increased by 175,358 ETH, which holds a value of approximately $661 million at present market prices.

ETH Price to New All-Time High

After last week’s sell-off, the Ethereum (ETH) price has been holding strong support at $3,750 and faces resistance at $3,830 on the upside. Once it crosses this, the ETH price could be eyeing a move above $4,000 and further to its new all-time high levels. Bloomberg’s ETF analyst Eric Balchunas believes that there’s a legit possibility of getting the spot Ethereum ETF approved by June end, which could lead to a price surge similar to what happened after the Bitcoin ETF launch.

Concerns Over Grayscale's Ethereum Trust

However, investors would have some concerns about Grayscale’s Ethereum Trust (ETHE), which has over $11 billion in AUM. If ETHE becomes a spot Ethereum ETF, it could also face outflows similar to GBTC. Some market analysts believe that the Ethereum ETF will see only 20% inflows to that of spot Bitcoin ETFs.