Ethereum is under selling pressure, but supply is tightening due to increased staking. Nearly 3 million ETH await staking, with an entry queue stretching 50 days long.
Staking demand is surging, while exits remain minimal, highlighting a disconnect between price movement and network behavior. Over 38 million ETH are now staked, representing more than 31% of total supply.
Hedge funds have reduced long ETH positions on Coinbase Derivatives, adding selling pressure to the market. Short positions currently outnumber longs by a margin of roughly 4:1, with high leverage present.
ETH is trading at $2,040 on a 1-day chart. Market sentiment may shift if hedge funds turn bullish.