Analyst: Ethereum price drops but staking rate continues to rise, investor confidence strengthens

CryptoQuant analyst PelinayPA pointed out that the price trend of Ethereum is diverging from staking activity. The staking rate for Ethereum 2 has increased by about 4.32% since May, with approximately 36.32% of the total ETH supply currently staked.

Although the price of ETH on Binance has dropped from around $2,800 in October to $2,132, the staking rate continues to rise, indicating that investors have not significantly reduced their staking commitments due to the weak price. Analysts believe that a higher staking participation rate reduces the supply of ETH available for trading, which may provide price support when demand is strong, but staked ETH is not permanently locked, as validators can initiate withdrawals.

At the same time, total staking inflows have decreased by 40.11%, highlighting the importance of distinguishing between long-term staking growth and daily inflow activity. Overall, Ethereum maintains a potentially supportive supply-side dynamic in the medium to long term; if the market can absorb selling pressure and attract sufficient demand, ETH may lay the groundwork for a stronger upward trend.