Trading at a price of $1,665 at the time of writing, Ethereum, the second-largest cryptocurrency by market cap, could be bottoming. This is also seen in the ETH staking activity, which has a zero exit queue and nearly a 3 million ETH entry queue.
Ethereum loses the support where it consolidated
Since August 2025, ETH has been crashing, making lower highs and lower lows. This price crash lasted until February 2026, when the price started to consolidate above the $1,760 support level and even made some recovery. But gone are those when ETH recovered; now ETH is struggling below the abovementioned support level at $1,665.
ETH’s downfall continues despite a third of the supply being locked
Ethereum continues to crash despite a third of its circulating supply being staked. When ETH gets staked, the amount of Ethereum available for trading on the open market declines, reducing the liquid supply and potentially easing selling pressure. This dynamic often signals bullish sentiment because a shrinking supply can amplify price appreciation when demand rises.
However, ETH prices have been falling despite the shortage in the supply. In addition to that, the staking exit queue has nearly dropped to zero, while the entry has a queue of 3 million ETH.
The exit queue represents validators who want to withdraw their staked ETH and leave the network, while the entry queue consists of investors waiting to activate new validators and begin staking.
A near-zero exit queue suggests that existing validators are showing little interest in unlocking and selling their ETH, signaling confidence in Ethereum’s long-term prospects.
At the same time, the large entry queue indicates strong demand from investors seeking to stake their holdings and earn network rewards. This imbalance between incoming and outgoing stakers reduces the liquid supply of ETH available on the market and can help alleviate selling pressure. If that’s the case, why is ETH still crashing, or if it is not crashing, is it bottoming?
Ethereum is bottoming as RSI reaches the oversold threshold
Ethereum is bottoming, and the chart above shows the relationship between the ETH price and the relative strength index indicator. Every single time ETH touched the lower trendline of the ascending triangle pattern, the RSI was on the brink of going over to the oversold region. However, before the RSI could cross over to the oversold region, the market corrected the prices.
Currently priced at $1,665, the RSI is at 31, on the verge of crossing over to the oversold region. But based on historical data, it safe to say that ETH is bottoming and the RSI will move away from the oversold region.
