Traders Predict Incoming ‘Supply Crunch’ as Ether Rallies to $3,000

As Ethereum (ETH) trades near the $3,000 mark, more than 80% of holders are now in profit, according to market intelligence firm Santiment.

The firm notes that over 124 million ETH — out of 155 million in circulation — are currently “in the green,” reigniting momentum around the second-largest cryptocurrency as public companies accumulate ETH on their balance sheets.

Institutional interest in Ethereum is also accelerating, with spot Ethereum ETFs recording their largest single-day inflows on July 10, attracting $386 million. The surge pushed cumulative total net inflows above $5.31 billion, per data from SoSoValue.

But according to Eric Jackson, founder of algorithmic trading firm EMJ Capital, the rally may be just getting started.

In an X post, Jackson said the ETH ETF is “not even priced in yet” and called for a base case target of $10,000 for ETH this cycle. He argues that staking approval — expected before October — will transform ETH ETFs into the first yield-bearing crypto funds in U.S. history.

Supply Shock

The U.S. Securities and Exchange Commission (SEC) approved rule changes permitting the listing of eight spot ETH ETFs in May 2024, but the approval explicitly barred staking within the ETFs, reflecting regulatory concerns that on‑chain staking might constitute an unregistered investment contract under securities law.

Without staking, these ETFs can hold ETH but cannot generate native yield, leaving the true “yield‑bearing” potential of ETH spot funds unrealized until staking itself receives the green light from the SEC.

Anthony Sassano, founder of the Ethereum-focused YouTube channel The Daily Gwei, highlighted in an X post an emerging “ETH supply shock,” pointing out that both ETH ETFs and companies adding ETH to their treasuries are purchasing significantly more ETH than is being newly issued, with most of the new ETH being locked up through staking instead of entering the open market.

“There is an ETH supply shock brewing that is going to catch absolutely everyone off-guard - I'm talking a god candle that you're going to be telling your grandkids about,” Sassano said.

The data appears to support the claim: over 35 million ETH, or roughly 30% of the circulating supply, is now staked, according to Beaconcha.in, with average yields ranging from 2.9% to 3.4% APY on aggregator platforms.