What could affect the price of ETH?

Ethereum’s price is influenced by technology upgrades, changes in staking, and regulatory challenges.

1. Staking changes – Solo validators are earning less, while liquid staking is becoming more popular (which could reduce decentralization).
2. Regulatory uncertainty – Delays in U.S. crypto laws create short-term uncertainty.
3. Tokenization growth – $118 billion worth of ETH is locked up, and institutional interest in real-world assets (RWA) is increasing.

Deep Dive

1. Changes in Staking Economics (Mixed to Negative Impact)

Overview:
Recent research shows that solo stakers—those who validate transactions on their own—are more sensitive to changes in rewards than those who stake through pools. Proposed reductions in ETH issuance could cut solo staker profits by about 27%, which might push more people toward liquid staking options like Lido’s stETH.

What this means:
If fewer solo validators participate, Ethereum could become more centralized. However, liquid staking might make ETH more attractive as collateral in decentralized finance (DeFi). Keep an eye on the validator exit queue (currently holding 841,000 ETH) as a sign of stress in the network.

2. U.S. Regulatory Delays (Short-Term Negative Impact)

Overview:
A crypto market bill expected in January has been delayed, leaving DeFi platforms like Uniswap uncertain about their future. The CEO of Robinhood points out that staking is still banned in four U.S. states, which is discouraging institutional investors (CryptoPotato).

What this means:
Regulatory uncertainty in the U.S. could limit Ethereum’s growth until the second half of 2026. On the bright side, the European Union is making progress with its MiCA regulations, including tokenized stocks. Meanwhile, Ethereum ETFs continue to attract steady investment, with $18.06 billion in assets under management.

3. Tokenization and Supply Constraints (Positive Impact)

Overview:
About 30% of all ETH—valued at $118 billion—is locked up in staking or DeFi, making it unavailable for trading. BitMine aims to own 5% of ETH (Kanalcoin), and BlackRock’s BUIDL fund shows growing institutional interest in real-world assets.

What this means:
With less ETH available for trading and more demand from institutions, scarcity is increasing. Ethereum’s burn rate (the rate at which ETH is permanently removed from circulation) adds further deflationary pressure, supporting price strength.

Conclusion

Ethereum’s outlook for 2026 depends on balancing the economics of staking with growing institutional demand for tokenized assets. Regulatory delays in the U.S. are a short-term challenge. The key factor to watch is staking rewards versus liquid staking adoption—will Ethereum’s security remain strong as rewards decrease? Also, keep an eye on the SEC’s position on staking ETFs and updates to crypto market legislation affecting DeFi.

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What are people saying about ETH?

Ethereum’s price is experiencing ups and downs, with some experts optimistic and others cautious. Here’s the latest:

1. Tom Lee and his followers are confident Ethereum will rise
2. Some traders see a warning sign that could lead to a 5% drop
3. Analysts are watching $3,500 as the next important price goal
4. One influencer recommends buying and holding Ethereum for now

In-Depth Look

1. @TomLeeUpdates: Positive outlook on Ethereum

“Bullish for Ethereum $ETH.”
– @TomLeeUpdates (6,424 followers · Jan 1, 2026, 7:53 PM UTC)
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What this means: Tom Lee is a well-known market expert, and his positive view on Ethereum can boost confidence among everyday investors, encouraging them to buy and hold.

2. @KlondikeAI: Warning of a possible short-term drop

“❕Bearish Pennant was formed on $ETH – Enter short at $3085, target $2987.”
– @KlondikeAI (3,033 followers · Jan 10, 2026, 10:00 PM UTC)
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What this means: This trader sees a pattern that often signals a price drop. If this plays out, Ethereum’s price could fall to about $2,987, which might trigger more selling.

3. @bpaynews: $3,500 price target by mid-January

“$ETH Price Prediction: Targets $3,500 by Mid-January 2026 – bullish technicals suggest upside momentum.”
– @bpaynews (2,030 followers · Jan 12, 2026, 7:03 AM UTC)
View original post
What this means: This forecast suggests Ethereum could rise about 11% from current prices, signaling strong buying interest and a key resistance level to watch.

4. @iambusinessdad: Encourages buying and holding

“Ethereum is a BUY & wait till I tell you to SELL. $ETH”
– @iambusinessdad (5,813 followers · Dec 19, 2025, 2:01 PM UTC)
View original post
What this means: This influencer advises holding onto Ethereum for the long term, which could reduce selling pressure and support price stability.

Conclusion

Opinions on Ethereum’s near-term price are mixed. Bulls are aiming for $3,500, while bears warn of a possible short-term dip. Keep an eye on Ethereum’s price around $3,300 — if it stays above this level, it could confirm a positive trend. If it falls below, the bearish outlook may take hold. Watching daily closing prices above $3,300 will help indicate the likely direction.

What is the latest news about ETH?

Ethereum’s recent news reflects a mix of regulatory uncertainty and growing buying interest as the available supply tightens.

1. US Bill Delayed (January 16, 2026) – Coinbase pulling back stalled crypto legislation, prompting the industry to rethink its approach.
2. BitMine CEO Change (January 15, 2026) – New leadership aims to increase BitMine’s Ethereum holdings to 5%, signaling stronger institutional involvement.
3. Supply Tightening (January 15, 2026) – About 30% of Ethereum’s supply is locked up in staking, reducing how much is available to trade and potentially pushing prices higher.

Deep Dive

1. US Bill Delayed (January 16, 2026)

What happened: A key U.S. bill aimed at regulating the crypto market was delayed after Coinbase withdrew its support, causing a Senate Banking Committee hearing to be canceled. Industry experts, like Mike Silagadze from Ether.fi, criticized the bill for possibly limiting innovation in decentralized finance (DeFi), especially around stablecoin earnings. Bill Hughes from Consensys said the delay gives regulators more time to create balanced rules that protect DeFi without being too restrictive.
What it means for Ethereum: In the short term, this delay keeps regulatory uncertainty in place, which can slow down progress. But in the long run, it could be positive if new laws provide clearer guidelines that encourage institutional investment. The delay avoids rushed regulations that might harm the industry but also postpones helpful frameworks that could boost adoption.
(Source: TokenPost)

2. BitMine CEO Change (January 15, 2026)

What happened: BitMine Immersion Technologies named Chi Tsang as its new CEO. The company plans to increase its Ethereum holdings to 5% of the total supply. Currently, BitMine owns about 2.9% (over 120 million ETH) and is working with partners like ARK and Pantera to grow its treasury. Although BitMine’s stock dropped nearly 5% after the announcement, this move shows stronger institutional commitment to Ethereum.
What it means for Ethereum: This is a positive sign because more corporate buying means less ETH available for trading, which can support price growth. Higher staking levels can also improve Ethereum’s network security, though there’s a risk of too much control concentrated in a few hands if not managed carefully.
(Source: kanalcoin.com)

3. Supply Tightening (January 15, 2026)

What happened: Over 36 million ETH, or about 30% of the total supply, is now locked in staking. This means those coins aren’t available for trading, creating a historic shortage of liquid ETH. The number of people waiting to become validators has increased, while fewer are leaving, indicating long-term holding. Big financial firms like Morgan Stanley are exploring staking ETFs, which could further reduce available supply as demand rises.
What it means for Ethereum: This supply squeeze is generally good for ETH’s price because less available supply means that any increase in demand can have a bigger impact. With fewer coins being sold and more coming in through ETFs, Ethereum could see sustained price increases—assuming the network continues to be useful and popular.
(Source: cryptonews.com)

Conclusion

Ethereum is facing regulatory challenges, but growing institutional interest and a shrinking supply are creating positive momentum. The big question is whether staking ETFs and corporate strategies can make up for legislative delays and help push ETH toward the $10,000 mark.

What is expected in the development of ETH?

Ethereum’s upcoming roadmap highlights three major upgrades:

1. Glamsterdam Upgrade (First half of 2026) – Improves scalability by processing transactions in parallel and increasing the gas limit.
2. Hegota Upgrade (Second half of 2026) – Enhances privacy and decentralization using a new data structure called Verkle Trees.
3. Quantum Resistance (2026–2030) – Updates encryption methods to protect against future quantum computer threats.

Deep Dive

1. Glamsterdam Upgrade (First half of 2026)

Overview: Scheduled for early 2026, Glamsterdam will change how Ethereum processes transactions. Instead of handling them one after another, it will process many at the same time, boosting capacity from about 21 transactions per second (TPS) to 10,000 TPS. The gas limit, which controls how much work can be done per block, will increase from 60 million to 200 million, helping reduce network congestion and lower fees. New features like Block Access Lists (BAL) will make contract execution more efficient, and Enshrined Proposer-Builder Separation (ePBS) will help prevent centralization issues related to Miner Extractable Value (MEV). This upgrade builds on the Fusaka PeerDAS framework, which improves how data is managed.
What this means: This upgrade is positive for Ethereum because faster processing and lower fees can encourage more decentralized apps (dApps) and improve Layer 2 solutions. However, there is a risk of delays or unexpected bugs in the new parallel processing system.

2. Hegota Upgrade (Second half of 2026)

Overview: Hegota focuses on making Ethereum more censorship-resistant and easier to run by using Verkle Trees, a new data structure that reduces storage needs by about 90%. This means running a node (a computer that helps maintain the network) will require less powerful hardware, supporting greater decentralization. The upgrade may also include some postponed features from Glamsterdam, like adjusting gas prices. The name “Hegota” combines parts of previous updates named “Bogota” and “Heze.”
What this means: This is good news for Ethereum because better decentralization makes the network stronger and more trustworthy. But if node operators are slow to adopt Verkle Trees, the benefits might take longer to appear.

3. Quantum Resistance (2026–2030)

Overview: As part of the “Ethereum Lean Plan,” this long-term effort will upgrade Ethereum’s encryption to defend against quantum computers, which could break current security methods. By 2026, teams working on zero-knowledge Ethereum Virtual Machines (zkEVM) will need to use 128-bit security proofs. By 2030, Ethereum plans to fully implement quantum-resistant algorithms to keep assets and decentralized finance (DeFi) safe.
What this means: This upgrade is important for building trust with institutions by ensuring Ethereum’s security stays ahead of future threats. However, the complexity of these changes could cause delays or increase costs for those validating transactions.

Conclusion

Ethereum’s 2026 roadmap focuses on three key areas: scaling up with Glamsterdam, improving decentralization with Hegota, and securing the future with quantum resistance. These upgrades aim to strengthen Ethereum’s position as a trusted global platform. The big question is how these improvements will help Ethereum compete with newer modular blockchains that separate different functions for efficiency.

What updates are there in the ETH code base?

Ethereum’s latest software updates improve scalability, security, and overall efficiency.

1. Fusaka Upgrade (December 2025) – Introduced PeerDAS, increasing data capacity by 8 times and cutting Layer-2 fees significantly.
2. Pectra Enhancement (September 2025) – Added a tool called keccak256preimage tracer to help analyze cryptographic functions.
3. EIP-7549 Compliance (October 2025) – Required new “Cell Proofs” to boost Layer-2 security and reduce network load.

Deep Dive

1. Fusaka Upgrade (December 2025)

Overview: The Fusaka hard fork activated Peer Data Availability Sampling (PeerDAS), boosting the number of data blobs per block from 6 to 48. This change lowers transaction fees on Layer-2 solutions like Arbitrum and Optimism by about 95%, while also making it easier for validators to run their hardware. Users benefit from faster and cheaper transactions.
What this means: This is a big win for Ethereum because it makes decentralized finance (DeFi) and NFTs more affordable without sacrificing security or decentralization. Lower fees could encourage more people to use Ethereum-based apps.
(Source)

2. Keccak256preimage Tracer (September 2025)

Overview: Ethereum added a new tool that helps developers see the original data behind KECCAK256 hashes. This makes it easier to debug cryptographic processes and audit smart contracts for security issues.
What this means: This update mainly helps developers by improving their tools. It doesn’t directly affect how fast or secure the network is but could lead to safer smart contracts over time.
(Source)

3. EIP-7549 Compliance (October 2025)

Overview: This important update required Layer-2 networks to switch from using “Blob Proofs” to “Cell Proofs.” This change improves data integrity and reduces the workload on Ethereum’s network communication system (RPC). The Ethereum Foundation issued urgent guidance to ensure everyone updated their software to avoid network problems.
What this means: This strengthens security, especially for cross-chain bridges and enterprise applications. Projects that delay updating risk transaction failures or running into compliance issues.
(Source)

Conclusion

These recent upgrades set Ethereum up for a more scalable and affordable Web3 future. Fusaka’s improvements in data availability and the security enhancements from EIP-7549 provide clear benefits for users and developers alike. Looking ahead, Glamsterdam’s planned block-time reductions in 2026 could further boost network speed and efficiency.

Why did the price of ETH fall?

Ethereum (ETH) dropped 0.59% in the last 24 hours, underperforming the overall crypto market, which fell 1.14%. Here’s why:

1. Whale Deposit – A large transfer of $43.35 million worth of ETH to the Gemini exchange raised concerns about potential selling.
2. Regulatory Uncertainty – The CEO of Robinhood pointed out that some U.S. states still restrict staking, creating uncertainty.
3. Staking Record vs. Competition – Ethereum’s staking reached a new high of 36 million ETH, but rival blockchains are gaining ground.

Deep Dive

1. Whale Activity (Negative Impact)

What happened: An early Ethereum investor moved 13,083 ETH (about $43.35 million) to the Gemini exchange after holding it inactive for 8 years. This is one of the largest transfers from a dormant wallet ever seen.
Why it matters: When large amounts of cryptocurrency are moved to exchanges, it often signals that the owner might sell, use it as collateral, or liquidate. Historically, these moves can cause short-term price drops because traders expect increased supply and react accordingly.

2. Regulatory Challenges (Negative Impact)

What happened: On January 14, Robinhood CEO Vlad Tenev called for clearer U.S. crypto laws, highlighting that staking is still banned in four states due to unclear regulations.
Why it matters: Staking allows users to earn rewards by locking up their ETH, which encourages holding and supports the network. Restrictions limit who can participate, reducing demand and slowing adoption by both everyday investors and institutions. This uncertainty also hurts confidence in Ethereum’s potential for generating income through staking.

3. Staking Milestone vs. Competition (Mixed Impact)

What happened: Ethereum staking reached 36 million ETH, about 30% of all ETH in circulation, marking a record high. However, Ethereum’s share of the total crypto market stayed steady at 12-13%, while competitors like Solana gained 16% year-to-date. Additionally, real-world assets tokenized on rival blockchains surpassed $1 billion.
Why it matters: More ETH locked in staking means less available for trading, which can support prices over time. But as investors explore faster and cheaper alternatives like Solana, Ethereum faces pressure to maintain its market dominance. The recent 38% weekly drop in the Altcoin Season Index shows investors are cautious about altcoins right now.

Conclusion

The large whale transfer and ongoing regulatory issues have had a stronger negative effect than the positive news about staking records. Still, Ethereum’s price has shown resilience, with gains of 5.79% over the past week and 11.67% over the last month.
What to watch: Will U.S. lawmakers clarify staking rules within the next 48 hours? This could significantly impact Ethereum’s future growth and adoption.