Demand for Ethereum staking decreases by half
February 24, 2026
The current state of the Ethereum price is causing concern as it struggles to regain momentum. Despite a slight 4.5% gain since February 19, the asset remains down more than 5% for the week. A bullish divergence on the daily chart initially sparked hopes of a recovery, indicating weakening selling pressure. However, a significant drop in staking demand has raised questions about hidden pressures on the market’s attempts to recover.
Staking ETH involves locking up coins to support Ethereum operations and earn rewards, effectively reducing circulating supply. The recent decline in staking activity has seen nearly 1 million ETH re-enter the market, potentially adding selling pressure. Total net staking deposits have fallen by about 50% in the past six months, pointing to a significant decrease in staking demand.
The increase in ETH held on exchanges corroborates the trend of rising supply. Exchange balance data shows a 2.4% surge in available ETH for trading, aligning with the drop in staking volumes. This surge in supply, coupled with a noteworthy decrease in holdings by large holders, indicates a lack of support for the price recovery, hinting at profit-taking or position reduction by big players.
On-chain cost basis data reveals key resistance levels where investors seek to break even, potentially creating selling pressure as the price reaches these levels. The concentration of ETH supply in the $2,020 to $2,070 range signifies a critical moment for the market. Resistance zones coincide with cost basis clusters, particularly around the $2,050 level, making it crucial for Ethereum’s short-term performance.
The current scenario presents a delicate balance between a potential recovery and the challenges posed by increasing liquidity in the market. While the bullish divergence initially fueled hopes of a rebound, the emerging resistance from rising exchange balances, whale sales, and cost basis clusters suggest a tough road ahead. Absorbing the returning supply may prove to be a challenging task without substantial new demand.
In summary, Ethereum’s price trajectory remains uncertain, with key support at $1,890 and critical resistance around the $2,050 level. The tug-of-war between bullish signals and bearish pressures signifies a fragile position for ETH, with the next price move hinging on the interplay between returning liquidity and demand dynamics.
