Ethereum (ETH) Stakers Return to Unrealized Profits Following Market Rally

In the ever-shifting landscape of cryptocurrency, Ethereum has emerged as a beacon of resilience, demonstrating a remarkable recovery from the lows of 2024. As the broader crypto market continues to rally, heating up with renewed momentum, heating up with renewed momentum, ETH has joined the broader crypto market rally with renewed momentum, registering a 38.2% increase in the past week.

At the time of writing, ETH is trading above $2,400, continuing its upward trajectory and narrowing the gap between its current price and its all-time high of $4,878 reached in 2021. The asset’s recent performance has placed it firmly in line with Bitcoin and other major cryptocurrencies, benefitting from revived market confidence.

On-chain activity is also beginning to reflect these price movements, especially among Ethereum stakers. According to data shared by CryptoQuant contributor Carmelo Alemán, Ethereum stakers have returned to a state of unrealized profits following a prolonged period of holding at a loss.

This shift, the analyst explains, could play a role in the next phase of Ethereum’s market dynamics as staking participants regain confidence in the network’s long-term outlook.

Realized Price and Stakeholder Sentiment

In his post titled “From Red to Green: Ethereum Stakers Are Back in Profit,” Alemán explained that staked tokens behave differently from regular circulating supply, remaining mostly static and thus excluded from metrics that rely on liquidity or transfer activity.

This difference is crucial in understanding metrics like the Realized Price, which calculates the average acquisition cost of a given cohort. Since March 3, 2025, Ethereum stakers have been operating under unrealized losses, with the Realized Price at $2,279 and the market price falling to $2,149.

However, that changed on May 9, 2025, when the market price of ETH reached $2,297, pushing the staked cohort back into profitability. At that moment, the updated Realized Price was $2,276, indicating that a majority of staked tokens were once again held above their cost basis.

The renewed profitability could reduce selling pressure and strengthen the resolve of validators and long-term holders who form the backbone of Ethereum’s proof-of-stake consensus model.

Implications for Ethereum’s Ecosystem

The return to unrealized profits among Ethereum stakers may carry broader positive implications for the network. Alemán highlighted that staked ETH is not only held by individuals seeking yield, but also plays a part in maintaining Ethereum’s network security through validator participation.

This shift back into profit territory may encourage new staking activity while discouraging premature withdrawals or profit-taking, helping to stabilize the supply side of the market.

In addition to individual stakers, institutions and Layer 2 protocol participants may interpret this trend as a bullish indicator for Ethereum’s future trajectory. Alemán stated:

This type of price recovery has the potential to trigger new waves of accumulation and participation in the network, further enhancing its security and long-term stability. If ETH maintains this upward trend, we may be witnessing the beginning of a new bullish cycle for Ethereum and its most committed actors, including L2 solutions and other ecosystem players.