Ethereum at $0.41 Gas Fees as 21Shares Pursues Revolutionary Staking ETF
Ethereum (ETH) is experiencing a significant shift in its network dynamics, with gas fees touching multi-month lows despite growing institutional ETF interest and a potential landmark staking proposal.
Layer 2 Solutions Now Process 417% More Transactions Than Ethereum Mainnet
| Broker | Review | Regulators | Min Deposit | Website | |
|---|---|---|---|---|---|
| 🥇 |  | Read Review | FCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTC | USD 100 | Visit Broker |
| 🥈 |  | Read Review | FSCA, FSC, ASIC, CySEC, DFSA | USD 5 | Visit Broker |
| 🥉 |  | Read Review | CySEC, MISA, FSCA | USD 25 | Visit Broker |
| 4 |  | Read Review | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | USD 200 | Visit Broker |
| 5 |  | Read Review | ASIC, FCA, CySEC, SCB | USD 100 | Visit Broker |
| 6 |  | Read Review | FCA, FSCA, FSC, CMA | USD 200 | Visit Broker |
| 7 |  | Read Review | BVI FSC | USD 1 | Visit Broker |
| 8 |  | Read Review | CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA | USD 10 | Visit Broker |
| 9 |  | Read Review | ASIC, CySEC, FSCA, CMA | USD 100 | Visit Broker |
| 10 |  | Read Review | IFSC, FSCA, ASIC, CySEC | USD 1 | Visit Broker |
Network data from GrowthePie.xyz shows that Layer 2 solutions are currently managing 4.17 times the transaction volume of Ethereum’s mainnet, significantly altering network usage patterns. Along with a recent network update raising block gas limitations by 20%, from 30 million to 36 million, this migration aligns.
Network Metrics Signal Fundamental Shift in Ethereum Usage
Recent network changes have reshaped transaction patterns:
- Block gas limit increase: 20% higher capacity
- Layer 2 dominance ratio: 4.17:1 vs mainnet
- Last comparable gas fee levels: August 2024
- Peak fee variation: 95% increase during market volatility
The impact on gas fees has been dramatic:
- Current average gas fee: $0.41
- Previous spike (Feb 17): $0.80 (+95% during 6% ETH price jump)
- Gas limit increase: 6 million units (30M to 36M)
Institutional ETH ETF Holdings Triple to 14.5% in Q4 2024
Even as Ethereum mainnet’s activity declines, institutional interest shows amazing increase:
- Q4 2024 ETH ETF ownership: 14.5% (up from 4.8% in Q3)
- Bitcoin ETF ownership comparison: 21.5% (slight decrease from 22.3%)
- First staking-enabled ETF proposal submitted by 21Shares to SEC
21Shares Pioneers First-Ever ETH Staking ETF Proposal
The SEC has acknowledged receipt of a potentially game-changing proposal from 21Shares, submitted through Cboe BZX Exchange, that would mark the first-ever staking-enabled Ethereum ETF in the United States. Key aspects of the proposal include:
- Direct trust ownership of staked ETH assets
- No third-party staking services or delegation
- Additional yield generation for ETF investors
- Clear distinction from previously rejected staking-as-service models
The proposal comes during a significant shift in SEC policy under the Trump administration, which has established a dedicated crypto task force, more transparent legal frameworks for staking, and reconsideration of certain tokens’ security classification.
Ethereum Price Analysis: ETH Eyes $3,500 Target Based on Q1 Historical Performance
Technical indicators suggest potential upward momentum in ETH/USD:
Key Resistance Levels:
- Primary: $2,755 (61.8% Fibonacci retracement)
- Secondary: $2,820
- Major target: $2,880
- Psychological barrier: $3,000
Support Zones:
- Immediate: $2,700
- Critical: $2,660
- Secondary: $2,620
- Major: $2,500
Historical Q1 Performance:
- Average Q1 returns since 2020: 40%
- Projected Q1 2025 target based on diminishing returns: $3,500 (+22%)
ETH/USD Technical Analysis
Technical indicators currently show:
- MACD: Gaining momentum in bullish zone
- RSI: Maintaining position above 50
- Primary resistance: $2,755
- Critical support: $2,660
ABOUT THE AUTHOR
See More
Add 3442
Related Posts
Add 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker