Ethereum, staking hits all-time high despite bear market... "Tokens locked amidst selling fear"

▲ Ethereum (ETH)

Ethereum (ETH) has raised concerns about a long-term correction due to its downward trend over the past two weeks, but on-chain indicators suggest that the long-term bullish thesis remains alive. While some signals indicated short-term investors preparing to sell, the increase in staked volume and the Market Value to Realized Value (MVRV) ratio supported the analysis that the structural demand in the Ethereum market has not been damaged.

NewsBTC reported on May 24 (local time), citing an analysis by PelinayPA published on CryptoQuant, that long-term investor confidence in Ethereum is being confirmed by various on-chain indicators. PelinayPA explained that the staking volume indicator, which began to rise in 2023, reached an all-time high in early 2026.

The increase in staked ETH means that a significant portion of Ethereum's circulating supply is being removed from the market's sellable volume. A decrease in tradable ETH lowers selling pressure and can create supply pressure in the mid-to-long term.

The Market Value to Realized Value (MVRV) ratio also supported the interpretation that the market has not entered an overheated zone despite the recent correction. PelinayPA pointed out that while many ETH holders are in profit, the indicator has not yet reached the overheated zone seen at past cycle highs.

Binance deposit activity was presented as a variable indicating short-term selling potential. This is because investors often send ETH to exchanges when preparing to sell or realize profits. However, PelinayPA analyzed that even with increasing Binance deposit activity, staked ETH is growing more steadily and strongly, so its impact is limited from a long-term perspective.

PelinayPA explained that while short-term investors prepare to sell, long-term holders are removing ETH from the circulating market and staking it. He observed that such discrepancies often create an atmosphere of mid-to-long-term supply pressure. Additionally, the total realized value of Ethereum continues to rise, adding to the assessment that capital is still flowing into the market.

PelinayPA diagnosed the current structure as one that frequently appears in the latter half of a bull market rather than a bear market. He analyzed that the Ethereum market is in a strong upward trend, and even if a correction occurs, it is likely to be a buying opportunity unless Binance deposit activity suddenly spikes.

At the time of reporting, Ethereum was trading at $2,113 on CoinMarketCap data, up 2.26% over the day. Despite the recent decline, the simultaneous increase in staking, the MVRV ratio in a pre-overheated stage, and the rise in total realized value suggest that Ethereum's long-term supply and demand dynamics lean more towards accumulation than selling.

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