Ethereum Staking Surge Amid Price Weakness: $745M Locked

While Ethereum’s spot price struggles below the psychologically significant $3,000 level, on-chain data from Arkham reveals a powerful counter-narrative. Over a recent 18-hour period, the entity Bitmine staked an additional 250,912 ETH, a move worth approximately $745 million. This substantial commitment is not an isolated event but an addition to an already massive position. According to the data, Bitmine has now staked a total of 2,582,963 ETH, valued at roughly $7.67 billion. Critically, this represents about 61% of its total Ethereum holdings, underscoring a strategic pivot away from liquid trading.

This aggressive staking activity during a period of price fragility and elevated market volatility signals a clear preference among large, well-capitalized players. Rather than distributing holdings into potential rallies or maintaining flexible exposure for tactical trades, entities like Bitmine are prioritizing yield generation and long-term network participation. The decision effectively removes a significant volume of ETH from active circulation, tightening the available liquid supply and mechanically capping potential sell-side pressure from these specific wallets. This dynamic underscores the growing structural importance of Ethereum’s proof-of-stake model, where investment calculus increasingly includes cash-flow-like returns from staking, not merely speculative price appreciation.

The current Ethereum market presents a stark contrast. On one side, the price action is undeniably weak, with ETH consolidating below key moving averages and facing clear overhead resistance. On the other, fundamental on-chain metrics point to a tightening of liquid supply. The large-scale staking by Bitmine is part of a broader trend, as Ethereum balances held on centralized exchanges have continued to trend lower. While declining exchange reserves do not guarantee upward price movement, they indicate that fewer coins are readily available to meet sudden sell orders, making price action more sensitive to marginal inflows.

This creates a market environment where long-term holders are demonstrably locking in their exposure, even as short-term sentiment remains cautious. The key question emerging from this divergence is whether this structural tightening of supply can provide a foundation of support to offset the currently weak spot market momentum. Alternatively, price may need to find stability and reclaim key technical levels before broader market confidence returns, regardless of the supportive on-chain fundamentals. The behavior observed in data from Arkham suggests that for some of the largest network participants, the answer is already clear: securing staking yield and reinforcing the network’s security is a superior strategy to navigating short-term volatility.

From a technical perspective, Ethereum’s price reflects a market in a state of indecision following a correction. ETH is currently trading in the $2,900 to $3,000 zone, an area that has served as both psychological support and a pivot point. The market structure remains tilted to the downside, with a clear sequence of lower highs established earlier in the quarter. Crucially, ETH is trading below its key moving averages, which are now acting as layers of resistance.

The 50-day moving average has rolled over and sits above the price, reinforcing near-term bearish pressure. The 100-day average continues to slope downward, acting as dynamic resistance in the $3,200 to $3,300 area. While the 200-day moving average is still rising, it is flattening and remains positioned much higher, indicating that the long-term bullish trend has not yet been reclaimed. Volume dynamics add context to this consolidation; the selling pressure during the latest pullback was notable but not extreme, suggesting distribution. Subsequently, volume has contracted, pointing to a market in a compression phase characterized by indecision rather than aggressive panic selling or accumulation. For the structure to shift toward stabilization, ETH needs a decisive close above the 50- and 100-day averages. Conversely, a sustained break below the $2,800-$2,900 support band would expose the market to further downside risk.