The Ethereum network has reached an unprecedented milestone in its economic structure after confirming that half of its total supply is deposited in participation contracts. According to real-time data from Everstake, exactly 50.18% of the ETH supply is now locked, representing more than 80.95 million tokens removed from immediate circulation.
This phenomenon marks a profound structural change in the asset’s supply and demand dynamics. By drastically reducing the inventory available on exchanges, selling pressure has dropped to historic minimum levels during this first quarter of 2026. This programmed scarcity increases price sensitivity to any surge in institutional or retail demand.
Scarcity projections and the path toward a five-figure valuation
The consolidation of capital in the consensus layer reflects a long-term conviction that outweighs short-term volatility. Through the Beaconcha.in explorer, it is possible to verify that, although the total deposit is massive, active stake remains at a solid 30.41% of the total circulating supply. This technical difference highlights the robustness of the network’s security under the Proof-of-Stake model.
Market analysts, based on expanding diagonal patterns since 2017, suggest that this supply shock could catalyze a parabolic move. If the cryptocurrency manages to maintain its technical structure above critical levels, the theoretical target of an 800% rally to 18,000 dollars becomes statistically possible. The current corrective phase seems to be, therefore, the base of the fifth Elliott wave.
Despite the 36% drop recorded in the last month, on-chain sentiment remains optimistic due to low systemic liquidity. The absence of “weak hands” in the spot market suggests that most holders prefer to secure passive yields rather than speculate on daily fluctuations. This resilience is the pillar that supports the supercycle thesis for Ethereum.
Will the reduction in liquid supply push Ethereum above its all-time highs this week?
Investors’ eyes are on the 1,900 dollar support zone, where price has shown signs of aggressive accumulation. If this trend holds, surpassing the 2,500 dollar barrier would confirm the start of the next stage of macroeconomic expansion. The validation of this bullish pattern depends, to a large extent, on the price not losing the support level psychological of 1,000 dollars.
The shortage of assets available for forced sale creates an “asymmetric upside” environment for long-term buyers. This technical setup is what allows experts to project price targets that previously seemed unreachable for the industry. The market is, therefore, in a revaluation phase based on pure digital scarcity fundamentals.
Ethereum’s evolution toward a deflationary yield asset consolidates its position as the leading infrastructure for decentralized finance. While staking continues to absorb the circulating supply, upward volatility could be much more violent than predicted in traditional models. Monitoring the flow of deposits into the Beacon Chain will be essential to understand the true ceiling of this financial cycle.
