Ethereum Fell Below $2,000 for the First Time Since August While Staking Hit an All-Time High of 36%. Why Are Holders Locking Up More ETH?
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Ethereum (CRYPTO:ETH) fell below $2,000 today, for the first time since August, even as staking surged to an all-time high. ETH trades at $1,999 at 10:14 a.m. ET, down 3.6% over the past 24 hours, after dipping as low as $1,981 during the session.
ETH last traded below $2,000 on August 19, when it reached a daily low of $1,905, and it came close again on November 10, hitting a low of $2,003. ETH now trades 59.6% below its all-time high of $4,946, reached on August 24, 2025.
Despite this price decline, more holders are staking their ETH. The staking ratio, which indicates the percentage of all ETH deposited with validators (the computers that help secure the network) to earn rewards, has climbed to 36.3%, according to data from Token Terminal. So why are holders putting more into Ethereum staking even as prices drop?
Why Did ETH Fall Below $2,000?
The market experienced a widespread sell-off that hit every major cryptocurrency. Over the same 24 hours, Bitcoin (CRYPTO:BTC) fell 3.6% to $71,285, while Solana (CRYPTO:SOL) dropped 4.7% to $80.73. For Ethereum, continued selling from fund investors and options dealers’ hedging drove the decline.
On November 11, spot Ethereum ETFs—funds that hold ETH for investors to buy shares via a traditional brokerage—saw net outflows of $145 million. The iShares Ethereum Trust (NASDAQ:ETHA) was responsible for $130 million of that outflow. When investors withdraw money, these ETFs typically sell ETH, increasing market supply.
Options trading has also added to the selling pressure. Coinbase Markets estimated a $589 million short-gamma pocket near $1,980. “Short gamma” refers to how options dealers, who sold those contracts, hedge their positions by selling ETH when prices fall and buying when they rise. This practice can amplify price drops.
ETH hit its session low of $1,981 during the session’s busiest trading hour, right at the edge of that cluster, suggesting dealer hedging added to the sell-off.
Who Is Still Staking ETH?
Staking, which involves locking ETH with a validator to help support the network in exchange for rewards, appeals to long-term holders. Even when prices drop, these holders still earn rewards in additional ETH. Our analysis of whether staking ETH is still worth it compares those rewards with a 10-year Treasury.
Some of the newest stakers are investment funds. The Grayscale Ethereum Staking Mini ETF (NYSEARCA:ETH) stakes the ETH it holds, letting investors collect rewards without running a validator. Funds like Grayscale’s have grown more comfortable staking since the SEC clarified its staking rules.
Treasury firms—public companies that keep cryptocurrency on their balance sheets—are also staking ETH. Bit Digital (NASDAQ:BTBT) reported holding about 163,726 ETH (worth about $327 million) on September 30 and liquid-staked 73,683 ETH during the quarter. Liquid staking provides a tradable receipt token that tracks the staked ETH. However, larger treasury holders face strain, as Bitmine’s paper losses show.
Staked ETH also isn’t easy to sell quickly. A holder who wants out must join the validator exit queue, which grows longer when many people try to leave at once. Therefore, those still staking tend to be long-term holders who are not looking to sell, and their coins can’t re-enter the market quickly even if they change their minds.
Can an All-Time High in Staking Support Ethereum’s Price?
The high staking ratio alone probably won’t stabilize Ethereum’s price unless new buyers emerge. The staking ratio reflects a commitment from current holders, but the coins that still trade set the price. ETH trades below its 20-day average of $2,257, its 50-day average of $2,443, and its 200-day average of $2,151, and being under all three averages indicates that sellers control the market on every time frame.
ETH has also fallen harder than Bitcoin. This week, ETH dropped 8.2%, while Bitcoin fell 3.1% and Solana fell 6.8%. Over the past month, ETH declined 17.8%, against Bitcoin’s 11.4% drop and Solana’s 22.1% fall. We think Bitcoin’s larger base of ETF and corporate buyers explains most of ETH’s sharper decline, as we covered in why Ethereum falls harder than Bitcoin.
Why Are Holders Locking Up More ETH as the Price Falls?
Holders continue to stake their ETH because the rewards keep adding coins, funds can now stake on behalf of investors, and treasury firms are staking their holdings too. The 36.3% staking ratio suggests strong conviction among existing holders. However, for prices to recover, the market needs fresh buyers, and ETF flows are the clearest sign of whether they’re returning.
If spot Ethereum ETFs see net inflows and ETH closes above its 200-day average of $2,151, the drop below $2,000 was probably a short-lived washout. After a daily close below the $1,980 hedging cluster, dealers could add more selling, and our look at how low ETH and Solana could go maps that downside. A longer exit queue during ETF outflows would mean conviction is breaking, turning staked coins into the next wave of supply.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
