Ethereum (ETH) is facing a supply crunch as more and more coins are getting locked up in staking. Right now, over 833,000 ETH are stuck in a 14-day queue to be staked, while another 823,000 ETH are waiting to be unstaked. This means a large amount of ETH is off the market, which reduces the amount available for trading. As a result, this limited supply could help push the price higher.

This huge backlog shows just how strong the demand is for staking. It also signals that investors and validators are confident ETH could break past $4,500 soon.

Since Ethereum moved from Proof of Work (PoW) to Proof of Stake (PoS), staking has become very popular. In this new system, validators replace miners by locking up ETH to help run and secure the network. They get rewarded in ETH, but if they act dishonestly, they can lose part of their stake.

After the Shanghai/Capella upgrade in April 2023, staking saw a big boost. ETH went from $1,800 to over $2,100 in just a few weeks. This shows how important network upgrades and increased staking can be for price movement.

In general, when there’s a shortage of validator supply in PoS systems like Ethereum, it tends to drive prices up. Many believe this could be the trigger for ETH to break out and reach new highs around $4,500.

At the same time, data from Glassnode shows that ETH on exchanges is hitting all-time lows. Big institutions like BlackRock and Fidelity, along with companies like Bitmine and Sharplink Gaming, are buying up large amounts of ETH. From mid-July to August, whales holding over 10,000 ETH led the biggest buying spree ever seen — with net inflows hitting 2.2 million ETH (about $10 billion).

There’s also a growing gap between how ETH is being traded on spot markets versus derivatives markets. While people are still buying ETH directly (spot), most price moves are being driven by speculative trades in the derivatives market.

Technical analysts believe ETH could go even higher with stronger support from big investors. Experts at Altcoin Vector say that to break past $5,000, Ethereum needs more large-scale buying and another push from the derivatives side.

Financial analyst Mike Zaccardi noted that while ETH has cooled off in recent days, the overall trend still looks strong. He pointed out a Wyckoff accumulation pattern — a bullish signal — which also appeared before Ethereum’s massive run from $90 to $4,866.

According to Fundstrat’s Mark Newton, ETH could hit $9,000 by early 2026 if the Ethereum-to-Bitcoin ratio continues to grow. Meanwhile, Tom Lee from Bitmine believes Ethereum’s use in AI and digital identity could be a major driver in pushing prices even higher.

During a recent chat with OpenAI’s Sam Altman about the risks of AI replacing human interaction, Lee suggested that Ethereum could help solve this problem by providing proof of human identity through its blockchain. This idea fits with Ethereum co-founder Joe Lubin’s prediction that ETH could increase 100x and even surpass Bitcoin’s value someday.

On the technical side, Ethereum is currently trading near $4,345. It’s stuck between a support zone ($4,195-$4,277) and a resistance level around $4,680. The Relative Strength Index (RSI) is at 41 — showing weak momentum but not yet oversold.

If ETH can stay above the support zone and climb back over $4,400, it could move up toward $4,500 and even challenge the $4,680 resistance. But if it drops below $4,195, there could be more downside ahead.

Overall, with high demand for staking, record-low exchange supply, and strong institutional interest, Ethereum looks primed for a major breakout — possibly beyond $4,500 and heading toward new all-time highs.