Ethereum's staking rate has reached a historic milestone, with over 30.5% of the total ETH supply now locked in staking contracts. This marks a significant shift from early 2023, when only about 15% of the supply was staked, representing a near-perfect straight-line doubling of participation over three years. The data, shared by analyst Leon Waidmann from CryptoQuant, highlights a steady climb in staking activity that has persisted through various market conditions, including bear markets, bull runs, crashes, and rallies.
Concurrently, the price of Ether (ETH) has shown volatility, recently breaking below the key psychological level of $2,000 on Binance. At one point, ETH traded around $1,950, following a sharp selloff that extended losses from late 2025. The breakdown saw price slice through prior support levels near $2,624 and $2,400, pushing ETH into a lower trading zone characterized by a series of lower highs and lower lows. Analyst TedPillows attributed the move to aggressive selling and heavy supply hitting the market.
The record staking level has profound implications for market dynamics. Waidmann argues that locking such a large portion of the supply reduces the liquid ETH available for immediate trading on exchanges, effectively removing a source of selling pressure. This is seen by some traders as a slow-burning bullish signal, tightening one side of the supply-demand equation. The trend also signals growing confidence from long-term participants who choose to commit ETH to validators for network security and rewards rather than holding it on exchanges for quick sale.
Historical patterns provide context for the current divergence between strong staking and weaker price action. Waidmann points to mid-2023, when staking rose above 22% while ETH hovered around $1,800, before a subsequent rally took it above $4,000. A similar pattern occurred in early 2025, with staking crossing 28% while ETH stayed below $2,500, preceding a move above $4,500 by October. The key uncertainty, according to analysts, is the timing of when these dynamics might converge to support price appreciation.
Looking ahead, market participants are watching several factors: the timing of validator withdrawal unlocks, the pace at which new staked ETH could return to exchanges, and broader macroeconomic conditions such as interest rates and liquidity. Analysts suggest that these macro moves will likely control the next significant price swings more than staking fundamentals alone.
