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Ethereum Eyes $2,000 as Reward-Cut Proposal Splits Market

Written by Eric Nkando
3 min read · Updated August 6, 2026
Blue Ethereum coin with the Ethereum logo reflected on a glossy surface against a blurred crypto market background, with an overlay headline reading “Can Ethereum Break $2,000 as EIP-8361 Sparks Staking Reward Backlash?” illustrating debate over Ethereum staking rewards and ETH’s attempt to reclaim the $2,000 level.
  • ETH is trading below $2,000, a closely watched level by traders.
  • Resistance is forming around the $1,900 to $1,950 zone
  • EIP-8361 remains an open question for traders watching Ethereum staking rewards.

Ethereum is trading just below $2,000. It’s been pinned below a descending trendline for weeks, unable to mount a serious run to $2,000, according to Coinscipher pricing data.

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The next hurdle is near the $2,000 mark, with the price remaining below this level since June. The price has severally been rejected from climbing above $1,950, which has been cemented as a major resistance for weeks now.

A potential break above $1,950 to $2,000 rests on a game of chance. For now, traders are keeping an eye on what is really happening in the market, especially with EIP-8361 making headlines recently.

What’s Actually Capping the Price

Six authors submitted EIP-8361 on August 4, Ethereum Foundation researcher Justin Drake among them. The proposal would burn a growing share of validator rewards as the staked portion of ETH’s supply climbs toward 50%, cutting the incentive to keep staking once that threshold gets close.

Not everyone’s on board. Aave founder Stani Kulechov called the idea a distraction, saying Ethereum should be scaling and capturing value instead of rewriting staking economics mid-cycle. That’s a real fight inside the ecosystem, not a minor technical quibble, and it’s happening while the proposal is still just a draft with no upgrade approval attached.

None of that is supposed to move price on its own. The authors have said as much. But debates like this tend to show up less as a headline and more as hesitation, and hesitation is exactly what ETH’s chart has shown near $2,000 for weeks now.

Why ETF Inflows Could Matter More Than the Staking Debate 

ETF demand looks like the thing that actually decides where ETH goes next. Spot Ether products added $53.75 million in net inflows on August 4 alone. Keep pulling in money at that clip and ETH gets a real shot at clearing $1,900 to $1,950 zone.

Opinions split sharply on what happens after that. A break above $2,000 opens a path toward $2,300, but traders are also watching $1,840 as the support level that matters. A break below it could send ETH back near $1,500. The staking debate will keep generating headlines either way, but the number that will actually settle this is how much fresh ETF money shows up before the month is out.

Sources:

Tech Times: Ethereum Proposal Would Zero Staking Rewards Once Half of ETH Supply is Staked