Staking Inflow indicates that investors are withdrawing their ETH from exchanges to stake. This movement generally reduces available supply, which tends to be supportive for price.
In the chart, staking inflows had been stable and moderate for a long time, but in October there is a massive vertical spike. This spike is far above all previous inflows and signals an extraordinary surge in demand. This Staking Inflow coincides with the period when ETH price reached its peak. The spike occurred while the price was already in a strong decline. In other words, when the price dropped, investors who staked managed to push the price upward.
In November, the price sharply fell from above $4K to around $2.7K. During this period, Staking Inflow also dropped to around 80K. This decline in Staking Inflow indicates that the price has not yet entered a recovery phase.
Investors still find Ethereum, currently priced at $2,800, too expensive to stake. This situation could push the price down toward $2,500.
Written by PelinayPA
