Grayscale’s $5B Ethereum Stake: Will It Revive ETH Price?

Grayscale made one of the largest Ethereum staking moves of 2025, locking 1.16 Million ETH valued at about $5 Billion within three days. Ethereum price declined sharply over the last couple of days.

This was unsettling for retail traders while signaling institutional confidence. Analysts said the firm’s move reflected long-term conviction rather than short-term speculation.

The activity occurred as Ethereum price fell in early October, a period that traders typically associated with seasonal strength known.

Observers questioned whether this timing could set the stage for a rebound later in the month.

Institutional Accumulation Amid Weak Ethereum Price

On-chain data from Lookonchain showed that Grayscale not only staked 1.16 Million ETH but also sent around 3,700 ETH, or about $16 Million, to Coinbase Prime.

Analysts interpreted these transfers as part of broader institutional portfolio adjustments rather than simple trading activity.

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At the time of writing, Ethereum price traded near $3,817, down roughly 15% in a week. Before the market crashed, the coin’s attempts to move beyond $4,600 had failed, leading to renewed selling pressure.

Analysts said that such retracements were typical after prolonged rallies and might clear excess leverage from the market.

Traders remained divided. Some viewed the decline as a sign of fading momentum, while others considered it a reset allowing stronger hands to accumulate.

Market commentary on X suggested that large funds were gradually increasing exposure despite short-term weakness.

Technical View: ETH Price Near Support Zone

Technical charts indicated that Ethereum price had approached oversold conditions. The Relative Strength Index (RSI), a measure of market momentum, was near 36 at the time of writing.

The Moving Average Convergence Divergence (MACD) indicator continued to show negative momentum, and selling pressure was on the higher side.

Key levels watched by traders included resistance near $4,400 and major support around $4,000.

Analysts said that maintaining levels above $4,250 could pave the way for a retest of $4,400. A break below that zone, however, might expose the token to a short-term drop toward $4,000.

The overall structure suggested sideways movement as the market awaited stronger signals of renewed demand.

This technical setup aligned with Ethereum’s behavior during similar consolidation phases in previous years, when temporary pullbacks preceded sharp rallies once sentiment improved.

Historical Patterns and Expectations For Ethereum Price

Several traders compared the current structure to Ethereum’s 2020 performance. Back then, Ethereum price dipped in early October before accelerating toward year-end.

Analysts said the resemblance was notable: both periods featured early declines, increased institutional interest, and a general market expectation of seasonal strength.

The timing of Grayscale’s stake drew attention because such large commitments usually required extensive planning.

Analysts viewed the move as an intentional play on long-term yield and network participation rather than a short-term trade.

Historical data supported that thesis. Each prior cycle of institutional accumulation during price weakness often preceded broader uptrends across major tokens.

Market participants cited Bitcoin ETF inflows, stablecoin growth, and staking demand as structural supports for Ethereum’s valuation in the coming quarters.

Some analysts suggested that, if Ethereum price held its current range through mid-October, the next leg of Uptober could begin in the latter half of the month, similar to 2020’s pattern.

What Analysts Expected Next for Ethereum (ETH) Price

Market analysts said that while short-term volatility remained likely, the broader environment favored gradual recovery.

They cited three main drivers: continued staking by large holders, improved risk sentiment following rate-cut expectations, and resilient network activity supporting long-term fundamentals.

They also noted that Grayscale’s move demonstrated how institutional strategies often diverged from retail sentiment.

As smaller investors sold into weakness, large funds appeared to accumulate positions in anticipation of higher yields and long-term appreciation.

Technical factors supported a neutral-to-bullish stance if Ethereum price maintained support above $4,000.

A decisive move above $4,400 could confirm renewed strength and potentially target the $5,000 area by year-end.

At the same time, analysts warned that failing to hold the lower range could delay recovery until after October.

They emphasized that institutional staking signaled confidence in Ethereum’s role as a yield-bearing asset rather than a speculative play.

The combination of Grayscale’s activity, oversold technicals, and recurring historical patterns suggested that Ethereum price might stabilize before attempting another upward leg later in the quarter.