The supply of Ethereum is shrinking with staking hitting all-time highs as ETF inflows continue to rise. The lock ratio stands at almost a third of the ETH supply, and regulated investment products have been gaining stable demand. The combination of all these forces is changing the Ethereum market structure and liquid supply.

Staking Hits Record Levels

On-chain statistics indicate that the active Ethereum staking is at an all-time high. Validators have more than 35 million ETH in stake, which represents more than 30% of the overall token amount. 

Growth has remained steady. The heightened expectations over recent months can be taken as positive long-term indicators of the stakeholders in the ETF, as opposed to gambling.

The ETFs have removed ETH tokens from the market and exchanges, decreasing their circulation in the market. This shortage increases demand, which increases the price. The staking of validators is rewarded and also increases the security of the network.

Source: Validator Queue

Also Read | Ethereum (ETH) Pushes Toward $5,000 As Support Holds And Momentum Builds

Capital Into Ethereum ETFs Causes A Strain On Demand

According to the January 14th net inflows, the capital amounted to approximately $175 million. These fund infusions have no impact on the supply of the market. The spot ETH ETF from BlackRock recorded the highest inflow at $86.1 million.

But they represent an indication of serious institutional interest and increase the pressure on an already fragile market. Together with staking, the decreased supply of ETH gives a bullish supply-demand cycle.

Source: SoSoValue

Bullish Structure Is Proven

The supply tightening provided by on-chain data is supported by technical indicators. On the 4-hour chart, Ethereum is trading above a 200-period exponential moving average (EMA).

This is a bullish formation that is long-term, which implies that buyers are taking over once again. It would be represented by the price being above the 200 EMA. This is mostly an indication of accumulation.

Further validation is through on-balance volume (OBV). Around the beginning of 2026, there is an increasing trend in OBV, together with price, implying a buying pressure over selling activity. Price-supported OBV indicates that real volume supports the demand.

Ethereum is on the rise and has only regained the $3,100 region. Buyers are also protecting key levels when it has pullbacks against the 200 EMA and reinforce existing structure.

Source: TradingView

Also Read | Ethereum 2026 Outlook: Is ETH Ready to Repeat 54× Rally History?