Following its recent surge above $2,400, Ethereum (ETH) is eagerly anticipated to experience another major price increase.
However, the expected rise for ETH may not happen immediately. One analyst said that rising bond yields are weakening ETH staking and that the ETH price may remain within a certain range.
Markus Thielen, CEO of 10x Research, stated that the Ethereum price is largely influenced by spot ETF fund flows.
Thielen noted a high correlation between the ETH price and the 30-day moving average of daily net inflows into spot ETFs over the past 12 months.
In this context, Thielen points out that institutional capital is a key variable for Ethereum.
However, Thielen noted that in a rising inflation environment, US 10-year Treasury bond yields have exceeded 4.6%, which has slowed down Ethereum staking.
Accordingly, with the increase in bond yields, the attractiveness of staking returns of approximately 2.5% has decreased relatively.
In conclusion, Thielen notes that spot Ethereum ETFs returned to net outflows in May, arguing that if the outflow trend continues, the Ethereum price is likely to remain within a certain range without establishing a clear direction for now.
“If the outflow trend in ETFs continues, Ethereum’s price will likely remain in a consolidation range.”
*This is not investment advice.
