How Will Ethereum Price React if Bitwise ETF Investors Stake $193M ETH?

Ethereum price hovers near $1,977 at press time on Thursday, March 20, trading in a tight range between $2,067 and $1,952. With Bitwise introducing ETH ETF staking, traders are watching for a supply squeeze that could push ETH above key resistance at $2,100. Will the upcoming move favor bulls?

Ethereum (ETH) struggles to find buyers after Trump Speech

Ethereum (ETH) traded within a 4% price range, bouncing between $2,067 and $1,952 on Thursday as the broader crypto market digested Donald Trump’s remarks at Blockwork’s Digital Asset Summit.

While Bitcoin saw a sharper decline following the event, ETH price action remained relatively static, suggesting that investors were holding positions amid uncertain market conditions.

Market liquidity was notably thinner than in previous sessions, leading to choppy price action with no clear trend confirmation. TradingView data shows that users on world’s largest crypto exchange Binance traded 691,000 ETH on March 19. With total volumes trend at 384,000 ETH at press time on Thursday, March 20.

Despite the decline in market activity Ethereum defended the $1,950 support level, as Trump’s appearance at Blockwork’s Digital Asset Summit reinforced long-term support for the crypto industry by the US government.

However, ETH also failed multiple attempts at breaching the $2,070 resistance, indicating that traders are waiting for a fundamental catalyst.

How will Ethereum Price React to Bitwise ETH ETF Staking Launch?

Capitalizing on the recent swing in US regulaotry stance on Crypto under Trump, US firms have been making frantic moves to deepen investment in the sector. On Thursday, US-based asset management firm Bitwise, filed proposal to introduce staking services for its Ethereum ETF investors.

At press time on Thursday. Bitwise currently manages $193 million in ETH ETF holdings.

By allowing traditional investors to earn staking rewards while maintaining exposure to Ethereum within a regulated investment framework, this move is expected to have significant bullish implications for ETH.

Firstly, by enabling staking, ETH market supply could shrink significantly, as more assets become locked in staking contracts.

Historically, similar supply constraints have acted as bullish catalysts for Ethereum price. This also comes just days after Ethereum successfully deployed the Hoodi network update.

Against the backdrop of the latest Fed rate pause, institutional participation in staking could potentially accelerates ETH demand. If short-term traders would attempt to place early bets on this long-term narrate, potentially leading to a breakout above the $2,100 resistance zone in the coming trading sessions.

ETH Price Forecast: $2,100 breakout could spark more gains

Ethereum price forecast signals suggests that a breakout above $2,100 could accelerate bullish momentum, but technical indicators reveal mixed signals. Currently, ETH trades around $1,977, facing strong resistance at $2,152, as shown by the Donchian Channel (DC) upper band, while support remains near $1,754 at the lower band. A breach above the midline at $2,000 would indicate a shift in market sentiment.

Volume analysis highlights decreasing sell pressure, with 386.49K ETH traded, lower than previous sessions, suggesting sellers are losing momentum. The Klinger Oscillator, a volume-based indicator, shows a negative reading at -3.41K, while its signal line remains lower at -24.75K. This bearish divergence suggests ETH lacks sufficient bullish momentum for an immediate surge but could gain strength if buyers step in above $2,000.

If ETH successfully retests and holds $2,100, it could target $2,550, aligning with previous highs. However, failure to break resistance may trigger a pullback to $1,900, with $1,754 as the key support. The next move will depend on volume expansion—higher buying activity above resistance could validate a sustained rally, while continued weakness risks a downturn toward March’s lows.