Coinbase’s Lack of Transparency in Staked ETH

Coinbase, the largest Ethereum staking custodian, has consistently avoided disclosing information on its staked ETH holdings for the past five quarters. Estimates suggest Coinbase manages approximately 21% of all staked ETH, raising significant concerns regarding transparency.

Despite branding itself as a transparent entity, Coinbase has not shared details about its staked ETH, cbETH backing, or cbBTC reserves, prompting doubts about the integrity of its staking operations. The frequent address rotation and custody structure complicate tracking its holdings further.

> 1/ it’s the 5th quarter where @coinbase, the largest staked ETH custodian, refuses to share any info on their staked ETH 🙃
> estimates indicate they manage ~21% of all staked ETH
> — hildobby (@hildobby_) February 18, 2025

Tracking Staked ETH

Identifying Coinbase’s staked ETH has proven difficult due to frequent address changes. Analysts previously estimated that around 15% of staked ETH was under Coinbase’s management, while recent estimates suggest it may be as low as 8.4%. This number only accounts for labeled addresses, leaving a considerable portion unexamined. As Coinbase adjusts its staking structure, accurately assessing its holdings remains challenging.

Related: Ethereum Fees at $0.41 – A 2-Year Low: ETH Price Impact Analyzed

Coinbase’s Role in Base Network

Base, Coinbase’s Ethereum Layer-2 network, closely interacts with Ethereum’s ecosystem, yet Coinbase remains tight-lipped about its involvement in Ethereum’s security. A transparent approach could bolster trust in their staking products. Moreover, cbETH could have seen wider adoption if its backing were verifiable, but Coinbase expanded cbETH’s supply without clarifying the corresponding staked ETH, leading to uncertainty about its actual value.

> 8/ Coinbase is all about transparency but has never shared any info on their staked ETH amount, cbETH backing or cbBTC backing
> — hildobby (@hildobby_) February 18, 2025

Ethereum Price Analysis

Key Support and Resistance Levels

Ethereum exhibits stability, trading at $2,728.67 with a 1.55% gain in the last 24 hours. A critical support zone lies between $2,685 and $2,690, expected to attract buying interest. If ETH cannot maintain above this level, support may shift to around $2,650.

On the upside, resistance appears between $2,740 and $2,750. A breakout could propel Ethereum towards $2,780 or even $2,800 soon. Overall, ETH is maintaining an upward trend with minor corrections, indicating a bullish outlook.

Technical Indicators

The Relative Strength Index (RSI) currently stands at 43.14, slightly above the oversold zone, suggesting that ETH is neutral-to-bearish with potential recovery opportunities if buying pressure increases.

Related: Ethereum Community Intrigued by $1.37 Million Burn & “Brain-Weapon” Claim

Meanwhile, the MACD shows a bearish trend, with the MACD line at -113.4, below the signal line at -138.3. However, the histogram indicates a potential bullish reversal, which could lead ETH to a positive trend beyond current resistances.

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