Ethereum Supply Tightens Amid Record High Staking and Withdrawals

In an exciting development for Ethereum, the supply is becoming constrained as staking and withdrawals from major exchanges reach all-time highs. Binance's Ethereum reserves have dipped to their lowest since 2020, reflecting a broader trend where the amount of Ethereum held on exchanges has fallen to a level not seen since 2016. This shift is driven by significant withdrawals and a surge in staking, which are removing coins from circulation.

Key Takeaways

Ethereum withdrawals hit record levels, with approximately $1.67 billion withdrawn from OKX on March 22.
About 31.6 million ETH left major exchanges in February, marking the largest monthly outflow since November 2022.
Approximately 38 million ETH is currently staked, representing around 33% of the total supply, which is unprecedented.
Analysts highlight the potential for a stronger price floor due to reduced liquid supply coupled with steady demand.

Ethereum

A Surge in Withdrawals Across Major Platforms

On March 22, crypto analyst Amr Taha highlighted a significant withdrawal of $1.67 billion worth of ETH from OKX. In addition, Binance recorded two notable outflows exceeding $300 million earlier this quarter.

These withdrawals are part of a broader trend; recent data from the analyst firm Arab Chain indicates that around 31.6 million ETH exited major exchanges throughout February alone, marking the largest monthly outflow since November.

Withdrawal Data

Binance was responsible for around 14.45 million ETH of this total, nearly half of the overall outflows. Following that, OKX contributed about 3.80 million ETH, and Kraken saw around 1 million ETH leave during the same period.

The pace of these outflows is significant because continuing withdrawals reduce the volume of coins available for spot trading. Coins transferred to private wallets or staking platforms are usually less liquid in the short term. This decrease in exchange balances may lead to increased price volatility when market activity intensifies.

Record High Staking for Ethereum

The story of withdrawals coincides with a notable increase in staking, creating a narrative of tightening supply. Currently, about 38 million ETH is staked, which is roughly 33% of the total supply—this is the highest percentage on record.

Staking Data ETHUSD now trading at $2,076. Chart: TradingView

Everstake, a provider of staking infrastructure, shared insights on the implications for the market. They noted that a continuing decline in liquid supply, coupled with persistent demand, sets the stage for a stronger price floor.

This trend reflects a longer-term structural change where an increasing amount of ETH is locked into the network rather than available for sale.

Analysts are closely monitoring price charts for any emerging patterns. Technical analyst Trader Tardigrade has spotted a potential cup-and-handle pattern developing on Ethereum's daily chart.

$ETH / daily
Did #Ethereum just quietly break out of the handle?
Low-key breakout or fakeout? 👀 pic.twitter.com/FtZdl5hfdY
— Trader Tardigrade (@TATrader_Alan) March 25, 2026

Price Movement Chart

For a confirmed breakout, ETH needs to rise above the 50-day exponential moving average and surpass significant Fibonacci levels. A failure to reach these milestones may keep the token in its current trading range.

As of March 25, ETH was trading at approximately $2,181, with increasing derivatives activity and positive momentum indicators. However, whether this will catalyze a price increase hinges on demand meeting the decreased supply levels.

Analysts conclude that Ethereum is still in an accumulation phase and has yet to establish a clear upward trend.

Featured image from Pexels, chart from TradingView