Tightening Liquid Supply: Can ETH Reclaim $2.5K?
Ethereum's (ETH) liquidity supply structure has tightened significantly in recent days, according to data from CryptoQuant. The platform's reserves had fallen to approximately 3.74 million ETH, marking their lowest level in three months.
This decline in reserves is a result of the rising staking participation, which now accounts for 35.9% of circulating supply. Roughly 43.1 million ETH was staked, limiting the portion of ETH readily available for trading and reducing potential selling pressure.
Despite this tightening liquid supply, Ethereum's derivatives positioning remains supportive, with Binance top traders maintaining a clear long-side bias. The long accounts represent 59.05% versus 40.95% holding short positions, resulting in a Long/Short Ratio of 1.44.