ETH Is in Trouble… But a Huge Comeback Might Be Coming!

"One major tailwind for Ethereum is the recent change in leadership at the SEC. Since Gary Gendler stepped down as chair, the SEC has taken a much more crypto-friendly approach towards the industry, almost doing a complete 180 on its previously hostile stance. This means that there's now a much higher chance of staked Ethereum ETFs being approved."

"One proposal in particular, EIP7251, will increase the validator staking limit from 32 ETH to 48 ETH. Now, this will be immensely helpful to ETH whales like institutions and allow them to consolidate their positions across fewer validators, giving them a much more convenient way to earn a yield. That said, we should point out that Perra was recently delayed after Ethereum developers noticed a few technical issues. As such, Perra will be trial on the Hudi test net while these issues are patched. But all going well, the PERA upgrade could go live on the main net as early as the 25th of April."

"On the macro front, meanwhile, if interest rates begin to fall, then US treasuries will have a lower yield as a result. Assuming that ETH's price begins to show some strength, this would make ETH staking much more appealing."

"Ultimately though, this demand could translate to ETH's price rising as these layer 2 gain adoption. So, while ETH's chart may be painful to look at right now, especially against BTC, the bullish momentum building behind Ethereum suggests that better times may yet lie ahead."

"As it happens, the Fed is widely expected to cut interest rates at least twice this year, with the first cut expected sometime over the summer."