Ethereum Staking Volume Surpasses 35 Million ETH: Is a Price Explosion Coming Soon?

Ethereum (ETH) experienced a noticeable pullback after a brief rally earlier this month. The asset surged above $2800 in mid-June but has dropped 8.7% over the past week, currently trading at around $2498.

This pullback occurred after a broader market consolidation; despite strong on-chain activity, Ethereum has struggled to maintain upward pressure.

Ethereum Staking and Accumulation Trends

Despite the negative price trend of ETH, on-chain indicators show opposite signs, indicating that investor confidence is strengthening. According to insights shared by on-chain analyst OnChainSchool via CryptoQuant's QuickTake platform, Ethereum's staking activity has reached new highs.

In just the first half of June, over 500,000 ETH were staked, bringing the total locked amount to over 35 million ETH. The increase in staked ETH not only reflects higher validator participation but also helps reduce circulating supply, a dynamic that may influence future price movements.

The report also highlighted the growth in accumulation addresses, which refer to wallets that have received ETH but have never withdrawn any ETH. Currently, the total holdings of these addresses have reached 22.8 million ETH, setting a new historical high.

This trend is typically interpreted as a sign of long-term holding behavior, suggesting that certain groups of investors are preparing for future price appreciation rather than short-term gains.

In summary, the record levels of staking and accumulation indicate that supply liquidity is diminishing, which could exacerbate upward price pressure if demand increases.

Ethereum Staking Volume Hits All-Time High: ETH Locked Amount Exceeds 35 Million

Technical Analysis: Is a Price Surge Imminent?

In addition to on-chain data, market participants are also analyzing Ethereum from a technical perspective. A cryptocurrency analyst using the pseudonym 'Bitcoinsensus' pointed out that since 2021, Ethereum's chart has formed a long-lasting 'bullish flag' pattern.

A bullish flag is a technical chart pattern that typically appears after a strong price rally, during a downward consolidation phase.

The consolidation period is a hallmark. If the asset breaks out of the flag and moves upward, it may indicate the continuation of the previous bullish trend. At the time of writing, the current price of ETH is $2470.