Ether’s (ETH) price experienced a 7% decline from its recent rejection at the $3,400 mark, falling back to key support levels. However, data indicates that increased staking demand, coupled with a resurgence in ETF inflows and robust technical support, could pave the way for a sustained recovery.
Ethereum Staking Demand Reaches 30-Month Highs
The queue for staking Ether has surged, now holding over 2.6 million ETH, valued at approximately $8.3 billion at current rates, resulting in a 44-day waiting period. This represents the largest amount of Ether designated for staking by the network's validators since July 2023.
Data from ValidatorQueue reveals that the active validator count stands at 978,657, with 29.76% of the total ETH supply, roughly 36.1 million ETH, currently staked.
Analyst Ted Pillows highlighted the significant demand, stating in a post on Sunday, "Ethereum’s entry queue is at the highest level in 2.5 years. Insane demand for staking Ethereum."
These substantial staking inflows are strengthening ETH's supply-demand dynamics, which could potentially drive upward price momentum throughout the year.
Concurrently, the Ethereum staking validator exit queue has dropped to zero. This development signals a significant reduction in selling pressure and enhances confidence in the yield-generating aspects of ETH's tokenomics.
Crypto investor Langerius commented on the situation in an X post on Sunday, noting that the complete clearing of the exit queue is a bullish indicator, suggesting that individuals are choosing to stake ETH rather than sell it.
Leon Waidmann, Head of Research at Onchain Foundation, pointed out that the last time the exit queue was cleared was in July 2025, a period that preceded a 100% rally in ETH's price to its all-time high of $4,950 on August 24, 2025.
Ethereum ETF Demand Shows Signs of Recovery
Increased accumulation and purchasing activity from Ether treasury companies and spot ETH exchange-traded funds (ETFs) have provided the necessary demand-side pressure to maintain ETH above the $3,000 level.
Data from Capriole Investments indicates that the collective holdings of strategic reserves and ETFs have risen by 10% since November 22, 2025, growing from 11,594,738 ETH to 12,227,531 ETH.
This chart illustrates that strategic ETH reserve entities and ETFs now collectively hold 9.72% of the total ETH supply, valued at approximately $40.1 billion.
The notable increase underscores a rapid consolidation of Ether into the portfolios of major institutional and corporate entities.
A significant portion of these entities are likely staking their ETH for additional yields as part of their trading strategies, which may have contributed to the expansion of the entry queue in recent weeks.
BitMine Immersion Technologies, led by Tom Lee and the largest corporate Ether treasury holder, has continued to aggressively stake its ETH holdings. Last week, the company added 186,560 ETH, worth around $625 million, to its staking address.
This brings BitMine's total staked amount to 1,530,784 ETH, approximately $5.13 billion, representing 4% of the total 36 million ETH staked on the Beacon Chain.
Furthermore, spot Ethereum ETF buying persists, with these investment products recording inflows every day last week, totaling $479 million, according to data from SoSoValue. These inflows followed a three-day period of outflows, during which these Ethereum funds saw a combined outflow of $351 million between January 7 and January 9.
The Key Cost Basis Area is Around $3,100
According to Ether’s cost basis distribution data, investors acquired approximately 3.27 million ETH at an average cost ranging between $3,100 and $3,170, establishing a potential support zone. This price level is significant as it could serve as a launchpad for the next upward price movement.
Analysts suggest that ETH must maintain support at $3,170, which aligns with the 21-day simple moving average (SMA), for bulls to regain momentum.
Michael van de Poppe, founder of MN Capital, stated in a recent X post, "21-Day MA is a crucial level to hold onto, and ETH has held that level nicely. Now, it's ready to make new highs and continue the uptrend."
As previously reported, holding above the $3,050 to $3,170 demand zone is critical for ETH's upside potential and could set the stage for a rally exceeding $4,000.