diff --git a/apps/trading-e2e/src/integration/deposit.cy.ts b/apps/trading-e2e/src/integration/deposit.cy.ts
index 44f472e2e..48b3ebc74 100644
--- a/apps/trading-e2e/src/integration/deposit.cy.ts
+++ b/apps/trading-e2e/src/integration/deposit.cy.ts
@@ -11,7 +11,7 @@ const formFieldError = 'input-error-text';
 const ASSET_EURO = 1;
 
 describe('deposit form validation', { tags: '@smoke' }, () => {
-  before(() => {
+  function openDepositForm() {
     cy.mockWeb3Provider();
     cy.mockSubscription();
     cy.mockTradingPage();
@@ -22,10 +22,14 @@ describe('deposit form validation', { tags: '@smoke' }, () => {
     cy.getByTestId('deposit-button').click();
     cy.wait('@Assets');
     connectEthereumWallet('MetaMask');
-    cy.getByTestId('deposit-submit').click();
+  }
+
+  before(() => {
+    openDepositForm();
   });
 
   it('handles empty fields', () => {
+    cy.getByTestId('deposit-submit').click();
     cy.getByTestId(formFieldError).should('contain.text', 'Required');
     cy.getByTestId(formFieldError).should('have.length', 2);
   });
@@ -48,7 +52,7 @@ describe('deposit form validation', { tags: '@smoke' }, () => {
   it('invalid amount', () => {
     mockWeb3DepositCalls({
       allowance: '1000',
-      depositLifetimeLimit: '600',
+      depositLifetimeLimit: '1000',
       balance: '800',
       deposited: '0',
       dps: 5,
@@ -67,7 +71,7 @@ describe('deposit form validation', { tags: '@smoke' }, () => {
   it('insufficient funds', () => {
     mockWeb3DepositCalls({
       allowance: '1000',
-      depositLifetimeLimit: '600',
+      depositLifetimeLimit: '1000',
       balance: '800',
       deposited: '0',
       dps: 5,
@@ -80,6 +84,8 @@ describe('deposit form validation', { tags: '@smoke' }, () => {
   });
 
   it('above deposit limit', () => {
+    // reload form with new web3 mocks
+    openDepositForm();
     mockWeb3DepositCalls({
       allowance: '1000',
       depositLifetimeLimit: '600',
@@ -87,11 +93,13 @@ describe('deposit form validation', { tags: '@smoke' }, () => {
       deposited: '0',
       dps: 5,
     });
-    cy.get(amountField)
-      .clear()
-      .type('650')
-      .next(`[data-testid="${formFieldError}"]`)
-      .should('have.text', 'Amount is above deposit limit');
+    selectAsset(ASSET_EURO);
+    cy.get(amountField).clear().type('650');
+    cy.getByTestId('deposit-submit').click();
+    cy.get(`[data-testid="${formFieldError}"]`).should(
+      'have.text',
+      'Amount is above deposit limit'
+    );
   });
 });
 
diff --git a/libs/deposits/src/lib/deposit-form.tsx b/libs/deposits/src/lib/deposit-form.tsx
index d78500a23..2df087e12 100644
--- a/libs/deposits/src/lib/deposit-form.tsx
+++ b/libs/deposits/src/lib/deposit-form.tsx
@@ -25,7 +25,8 @@ import { useWeb3React } from '@web3-react/core';
 import BigNumber from 'bignumber.js';
 import type { ButtonHTMLAttributes } from 'react';
 import { useMemo } from 'react';
-import { Controller, useForm, useWatch } from 'react-hook-form';
+import type { FieldError } from 'react-hook-form';
+import { Controller, useForm } from 'react-hook-form';
 import { DepositLimits } from './deposit-limits';
 import { useAssetDetailsDialogStore } from '@vegaprotocol/assets';
 import {
@@ -106,8 +107,6 @@ export const DepositForm = ({
     }
   };
 
-  const amount = useWatch({ name: 'amount', control });
-
   const maxAmount = useMemo(() => {
     const maxApproved = allowance ? allowance : new BigNumber(0);
     const maxAvailable = balance ? balance : new BigNumber(0);
@@ -138,13 +137,7 @@ export const DepositForm = ({
     return minViableAmount;
   }, [selectedAsset]);
 
-  const approved =
-    allowance &&
-    allowance.isGreaterThan(0) &&
-    new BigNumber(amount || 0).isLessThan(allowance)
-      ? true
-      : false;
-
+  const approved = allowance && allowance.isGreaterThan(0) ? true : false;
   const formState = getFormState(selectedAsset, isActive, approved);
 
   return (
@@ -304,24 +297,35 @@ export const DepositForm = ({
               validate: {
                 required,
                 minSafe: (value) => minSafe(new BigNumber(min))(value),
-                maxSafe: (v) => {
+                approved: (v) => {
+                  const value = new BigNumber(v);
+                  if (value.isGreaterThan(maxAmount.approved)) {
+                    return t('Amount is above approved amount');
+                  }
+                  return true;
+                },
+                limit: (v) => {
+                  const value = new BigNumber(v);
+                  if (value.isGreaterThan(maxAmount.limit)) {
+                    return t('Amount is above deposit limit');
+                  }
+                  return true;
+                },
+                balance: (v) => {
                   const value = new BigNumber(v);
                   if (value.isGreaterThan(maxAmount.available)) {
                     return t('Insufficient amount in Ethereum wallet');
-                  } else if (value.isGreaterThan(maxAmount.limit)) {
-                    return t('Amount is above deposit limit');
-                  } else if (value.isGreaterThan(maxAmount.approved)) {
-                    return t('Amount is above approved amount');
                   }
+                  return true;
+                },
+                maxSafe: (v) => {
                   return maxSafe(maxAmount.amount)(v);
                 },
               },
             })}
           />
           {errors.amount?.message && (
-            <InputError intent="danger" forInput="amount">
-              {errors.amount.message}
-            </InputError>
+            <AmountError error={errors.amount} submitApprove={submitApprove} />
           )}
           {selectedAsset && balance && (
             <UseButton
@@ -340,6 +344,30 @@ export const DepositForm = ({
   );
 };
 
+const AmountError = ({
+  error,
+  submitApprove,
+}: {
+  error: FieldError;
+  submitApprove: () => void;
+}) => {
+  if (error.type === 'approved') {
+    return (
+      <InputError intent="danger" forInput="amount">
+        {error.message}.
+        <button onClick={submitApprove} className="underline ml-2">
+          {t('Update approve amount')}
+        </button>
+      </InputError>
+    );
+  }
+  return (
+    <InputError intent="danger" forInput="amount">
+      {error.message}
+    </InputError>
+  );
+};
+
 interface FormButtonProps {
   selectedAsset?: Asset;
   formState: ReturnType<typeof getFormState>;