Ethereum Exchange Balances Drop as Staking Frenzy Increases
The recent frenzy surrounding Ethereum staking has led to a significant decrease in the amount of ETH held on trading platforms. Santiment experts have noted a consistent decline in the share of Ethereum on exchanges over the past six months. In July 2024, the balance of Ethereum on exchanges peaked at 12.31 million coins, but by January 2026, this number had dropped to 8.15 million ETH.
This reduction in exchange balances is attributed to the growing interest in staking Ethereum. Currently, 36.5 million coins are locked in the network, accounting for 30% of the total supply of the cryptocurrency. As more investors choose to stake their Ethereum, the supply on exchanges continues to decrease. The validation queue for staking has also reached a record high of 3.7 million coins, with a waiting period of 64 days.
Despite the recent price dynamics of Ethereum, which has been trading in a range of $2900-$3300 in the past month, analysts remain optimistic about the future of the cryptocurrency. Some experts believe that Ethereum is undergoing a technical correction before resuming its growth. Annie, an expert using the Wyckoff method, predicts a potential breakout for Ethereum above the $10,000 mark in the near future.
Bitcoinsensus, another specialist, also shares this optimism, considering a scenario where Ethereum could reach $10,000 in the current cycle. However, Crypto Caesar points out that for this growth to occur, Ethereum must break through the monthly resistance in the $4500-5000 range. Short-term forecasts suggest a possible drop in Ethereum’s price to the $2800-2850 zone, but investors remain hopeful about the long-term prospects of the cryptocurrency.
The recent Fusaka update has seen increased network activity on the main Ethereum network, surpassing the performance of Layer 2 solutions. Although some analysts, like those at JPMorgan, express doubts about the long-term sustainability of Ethereum’s metrics, overall sentiment remains positive regarding the future of the second-largest cryptocurrency by market capitalization. As the trend of staking Ethereum gains momentum and exchange balances continue to decrease, investors are looking forward to potential price surges and developments in the Ethereum ecosystem.
