Ethereum Supply Tightens as Whale Accumulation and Staking Offset Ongoing Sell Pressure

Ethereum saw record December inflows into accumulation addresses as staking activity continued removing ETH from active circulation.

Ethereum supply trends are shifting quietly as prices stay range bound and traders watch resistance levels closely. On chain data shows accumulation and staking rising together, even as selling continues. 

These movements suggest changing behavior beneath flat prices and cautious sentiment. The market focus now turns to Ethereum.

Ethereum Accumulation Addresses Record Strong Inflows

On chain data from December shows Ethereum moving steadily into accumulation addresses.

These wallets have histories of limited selling during volatile periods. As a result, available supply in active trading venues has declined gradually. 

This pattern continued even while short term selling pressure remained present.

Crypto Rus referenced FXStreet data to explain these accumulation trends. The data showed record monthly inflows into long term holding addresses. 

Meanwhile, spot price action stayed narrow, and volatility remained muted. This contrast suggests accumulation activity occurred without strong price reaction.

Nonetheless, glassnode metrics also confirm rising balances in low turnover wallets. 

These addresses tend to hold Ethereum across longer market cycles. At the same time, exchange balances showed only modest increases.

This balance supports observations of supply moving away from immediate sale conditions.

Staking Activity Continues to Reduce Liquid Supply

Ethereum staking levels continued rising through the end of December. Validator deposits increased, and total staked ETH reached new network highs.

Staked assets remain locked and unavailable for active market trading. Hence, circulating supply continues to tighten gradually. 

Staking behavior often reflects longer investment horizons rather than short term positioning.

Participants commit funds for yield and network participation. This reduces reactive selling during brief price changes. As a result, market liquidity dynamics adjust slowly over time.

Moreover, data shows steady growth in validator counts and staked balances. Withdrawal activity remained limited during the same period.

These metrics indicate stable commitment from staking participants. Supply removal through staking has remained consistent despite uneven price recovery.

Related Reading: Ethereum Price Surge to $4K Expected as Long-Term Holders Buy In

Ethereum Whale Transactions and Market Structure Signals

Concurrently, large Ethereum transactions continue appearing despite cautious broader participation. Lookonchain reported a purchase of 12,166 ETH worth over $38 million. The acquisition occurred through Coinbase, FalconX, and Cumberland. 

Such transactions indicate selective accumulation by large holders. However, broader whale activity metrics show mixed behavior.

Glassnode data shows fewer large address interactions compared with previous rallies. This suggests some large holders remain inactive rather than distributing aggressively. 

Additionally, technical data shows resistance remains near the $3,150 price zone. Cost basis data indicates heavy prior buying in this range.

Many holders approach break even levels near current prices. Selling pressure may increase as prices test these zones.

Exchange flow data also remains balanced rather than strongly positive. ETF flows stayed limited, and institutional demand appears restrained.

Still, accumulation and staking trends continue alongside this caution.