Ethereum staking demand drops by 50% – will ETH price become even more difficult?

Ethereum price trends have not inspired much confidence lately. It has remained mostly flat over the past 24 hours and remains down more than 5% over the past seven days. Still, small-scale recovery efforts are underway. Since February 19, Ethereum has rallied around 4.5%, helped by a bullish divergence on the daily chart.

This signal usually suggests that selling pressure is easing. But at the same time, the sharp decline in staking demand is raising new questions. Is the recovery in liquidity adding to the silent pressure on this recovery?

We see a bullish divergence, but supply may return due to lower staking demand

Ethereum’s recent rally began after a bullish divergence that formed between February 15th and February 19th. A bullish divergence occurs when the price makes a lower low and the relative strength index (RSI) makes a higher low. RSI is a momentum indicator that indicates whether there is strong selling pressure or strong buying pressure.

When the RSI improves while prices fall, it often indicates that sellers are losing strength and a rebound may begin. This is why Ethereum has managed to recover from its February 6 lows around $1,740 and rally toward $1,970 at the time of writing.

Weak Bullish Divergence: TradingView

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

However, while the charts are showing a recovery, Ethereum staking data compiled exclusively by BeInCrypto analysts has begun to show the opposite trend.

Staking means locking $ETH It helps you keep your Ethereum safe within the network and earn rewards. when $ETH Once staked, those coins cannot be easily sold, reducing the liquid supply.

However, when demand declines, supply may return to the market, increasing sell risk.

Ethereum 6-month cumulative net staking deposits decreased from 1,994,282 $ETH From January 13th to 1,008,012 $ETH This is a decrease of approximately 986,000 people. $ETHor almost 50%.

Decreasing demand for staking: Dune

This precipitous decline means much less $ETH It is being absorbed into staking. This allows you to do even more $ETH To maintain liquidity or availability in the market. This creates a direct conflict.

A bullish divergence signals a recovery, while a decline in staking demand suggests liquidity is returning. Therefore, an important question becomes clear.

where does this come back $ETH Are you going?

Exchange balances and whale sales show liquidity is already in play

Exchange balance data is your first clue. Ethereum balance on the exchange recently increased from 14,241,203 $ETH Up to 14,586,720 $ETH. This is an increase of approximately 345,500 people. $ETHor about 2.4% in the short term.

Measures how much the exchange balance is $ETH Available on trading platforms. As this number increases, it usually means more $ETH Available for sale.

This level is particularly important as it matches the level last seen on February 4th.

At the time, Ethereum’s price plummeted from $2,140 to $1,820 in just one day, a drop of nearly 15%. This shows how an increase in exchange supply can quickly turn into selling pressure.

Rising exchange balance: Glassnode

This timing also roughly coincides with the decline in staking, confirming that the decline in staking demand is contributing to the increase in liquid supply.

$ETH Whale behavior is reinforcing this trend. Whales are large holders and their buying and selling can influence the direction of prices. Since February 19, whale stock has decreased from 113.65 million. $ETH Up to 113.42 million people $ETH.

This means approximately 230,000 whales were sold. $ETH In just 3 days. This sale occurred while Ethereum was trying to recover.

This suggests that large holders may be using existing or increased liquidity to reduce their positions instead of supporting a rebound. This combination of rising exchange balances and whale selling indicates that liquidity is not just returning. It’s already creating resistance.

Cost-based cluster shows why Ethereum price recovery will soon face resistance

On-chain cost-based data explains where this resistance appears. The cost basis represents the price level at which the investor previously purchased. $ETH. When prices return to these levels, many holders will try to sell at breakeven, creating resistance unless a reason to hold arises.

This data is obtained from the UTXO Realized Price Distribution (URPD). Although Ethereum uses an account-based system, this metric has been adapted to estimate Ethereum’s supply distribution.

This indicates that more than 2% of Ethereum’s supply is concentrated between $2,020 and $2,070. These levels also closely match resistance levels on the Ethereum price chart.

This creates an important test. If Ethereum continues to recover, it will first need to break above $2,050 and then challenge the $2,140 level. A stronger move could extend to $2,300.

However, with supply concentrated around $2,020 and $2,070, many holders may sell as follows: $ETH approach these levels. This makes $2,050 the most important zone in the short term.

Since staking demand has decreased and whales have already been sold, it will be difficult to absorb this supply (if it is unlocked when the price reaches a critical level) without new strong demand.

Ethereum Price Analysis: TradingView

On the downside, the major support level is located at $1,890. This level is about 4% lower than current prices. If this support fails, Ethereum could fall back toward February lows near $1,740.

This puts Ethereum in a dangerous position. The bullish divergence opens the door to a recovery. However, declining staking demand, rising exchange balances, whale sales, and strong resistance in the cost base suggest that a recovery in liquidity could determine what happens next.

Demand decreases by 50% after Ethereum staking – $ETH Is price even more of an issue? The post appeared first on BeInCrypto.