Ethereum has reached a major milestone, with over 28% of its total supply currently being staked, according to crypto researcher Leon Waidmann. This record-breaking amount of staked Ethereum reflects the growing confidence in the future of the platform and the community’s dedication to securing the network through staking. Additionally, there has been a significant decline in the amount of Ethereum held on crypto exchanges, with only around 10% currently available for trading. This trend towards staking and long-term holding is reducing the available supply for trading, potentially impacting Ethereum’s price dynamics.
The decrease in Ethereum held on exchanges has been accompanied by a corresponding increase in price, suggesting that as more ETH leaves exchanges for staking or private wallets, investor confidence in Ethereum’s long-term potential is on the rise. Market data from CryptoQuant shows a consistent uptrend in the amount of ETH tokens being locked in staking contracts over the past year, with over 33.9 million tokens currently locked, valued at over $111 billion. This combination of reduced supply on exchanges and increased staking rates points towards a significant supply squeeze that could drive Ethereum’s price higher in the near future.
Technical indicators like the Relative Strength Index (RSI) support a bullish outlook for Ethereum, with the current RSI standing at 56.92, indicating a slightly bullish trend. An RSI value above 50 typically signals a bullish trend, and the absence of extreme buying or selling pressure suggests that Ethereum’s price may continue to rise. Furthermore, previously dormant Ethereum whales have been reactivating with significant transfers, some specifically for staking. In May, a dormant Ethereum whale staked 4,032 ETH, valued at $7.4 million, after over two years of inactivity, demonstrating renewed confidence in Ethereum’s future.
The recent uptrend in Ethereum staking and the decline in exchange holdings suggest that a significant price surge may be on the horizon for the platform. With more ETH being locked away in staking contracts and fewer tokens available for trading, the buying pressure on Ethereum is likely to increase, potentially driving prices higher. The reactivation of dormant Ethereum whales and their participation in staking activities further indicate a positive sentiment towards Ethereum’s future performance. Overall, the current market conditions point towards a bullish outlook for Ethereum, with potential for significant price growth in the coming months.
