Ethereum, Price 'Sluggish' Despite All-Time High Staking...On-chain Usage Plunges 90%

▲ Ethereum (ETH)

While Ethereum (ETH) staking ratio has reached an all-time high, network usage and US institutional spot demand have simultaneously dried up, shifting the price support towards Binance derivative leverage.

According to cryptocurrency media NewsBTC on May 27 (local time), Ethereum gave up $2,100 and failed to maintain its recovery structure after its mid-May peak. CryptoOnchain analysis explained that two conflicting trends simultaneously appeared in Ethereum network data. The Ethereum 2.0 staking ratio hit an all-time high of 32.18%, but the network's organic activity sharply contracted.

Increased staking indicates confidence among long-term holders. 32.18% of the total Ethereum supply is locked in validator infrastructure, acting as a structural buffer by reducing the immediately salable supply. However, the average token transfer volume and transaction fees have plummeted by 80% to 90% compared to the 90-day baseline. NewsBTC reported that daily usability, which creates demand for block space through transactions, DeFi, NFTs, and protocol interactions, has almost disappeared.

US institutional spot demand has also weakened. The Coinbase Premium dropped to minus 0.12, indicating that US institutional spot buyers, who had led past Ethereum recovery phases, have retreated from active accumulation. On-chain activity indicators pointed to the absence of even individual investors and protocol users.

The force supporting the price came from the Binance derivatives market. Binance Funding Rates were 688% higher than the 90-day baseline, maintaining a level of plus 0.01. CryptoOnchain diagnosed that speculative leverage positions on the world's largest derivatives exchange are propping up Ethereum's price amid weak spot demand and network usability.

Technical trends are also unstable. Ethereum continued to trade around $2,100 but remained below the $2,280 to $2,380 resistance zone, which has repeatedly thwarted recovery attempts since May. The 200-day moving average also maintained a downtrend, reinforcing a broader bearish structure. However, buying pressure is defending the $2,050 to $2,100 support zone, and a decisive break below this zone could expose the $1,800 to $1,900 demand zone, according to analysis.

NewsBTC stated that for Ethereum to regain momentum, it must first recover $2,200 and then break through the $2,300 to $2,400 resistance zone. While the all-time high staking ratio creates a structural supply floor, a price structure relying on leverage instead of spot demand and on-chain usability leaves it vulnerable to rapid fluctuations during deleveraging events.

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