ETH Supply Tightens as Staking and ETF Demand Reduce Liquid Float

The supply-side squeeze is the key signal here: with staking and ETFs pulling ETH out of liquid circulation, the market's sensitivity to demand shifts increases. This matters for traders and liquidity providers who may face sharper swings. The real test isn't the current tightening but whether the drivers—ETF demand and ETH's relative strength against BTC—hold. A sustained move above the cited technical levels would confirm the trend, but a reversal in inflows could quickly unwind the dynamic. Watch for any slowdown in ETF purchases or a drop in staking yields as early indicators.