ETH exchange supply shrinks as staking grows amid sideways price

💡 DMK Insight

Ethereum’s validator queue is jam-packed, and here’s why that matters: With 3.6 million ETH queued for staking and a 63-day wait, this congestion signals strong demand for staking, which could lead to upward pressure on ETH prices. Traders should note that such high staking interest often correlates with bullish sentiment in the market. If ETH can maintain above the $2,900 level, it may attract more buyers, especially as the network’s transition to proof-of-stake continues to unfold. However, the long wait time could also deter new stakers, potentially leading to a short-term pullback if sentiment shifts. Keep an eye on the $2,800 support level; a drop below that could trigger selling pressure. On the flip side, this congestion might also reflect broader market hesitance, as traders weigh the risks of entering a crowded staking environment. Institutions could be watching closely, as a sustained increase in staked ETH could impact liquidity and trading volume. As we approach the next 63 days, monitoring the staking dynamics and ETH’s price action will be crucial for positioning in this volatile environment.