The amount of staked Ethereum is continually increasing. However, more than half of it remains underwater in terms of gains made despite the ETH price recently hitting local highs.

A large portion of all the Ethereum staked is still underwater, according to research shared by analysts on Feb. 18.

The chart shows that 60% of all staked ETH was locked in at a price of $1,600 or higher, while the remaining 40% that was staked at lower prices remains in profit.

More than 2 million ETH were staked at prices between $500 and $700. This would have been staked when the Beacon Chain launched in December 2020, and the asset was trading for around $600.

About 60% of total #Ethereum staked is underwater at current price pic.twitter.com/jS2Bdt0z24 — Technical Crypto Analyst (@TechCryptoAnlst) February 18, 2023

Ethereum Staking Still Bullish

More than half of Ethereum stakers being in the red doesn’t sound very bullish. However, the situation worsened last year when ETH prices plunged as low as $1,000. At this level, more than 80% of staked ETH was underwater, as reported by BeInCrypto at the time.

The chart shows that a lot of Ethereum was staked at prices between $2,500 and $3,500. Furthermore, it could be a while before those levels are revisited as the bear market continues.

There are currently 16.7 million ETH staked, according to Ultrasound.Money. At current prices, this is valued at roughly $28.2 billion, representing 13.8% of the entire supply.

That supply has shrunk by around 29,192 ETH, or $49.2 million, since the Merge in September 2022. Furthermore, ETH issuance is currently deflationary, with the supply declining by around a quarter of a percent per year.

The approaching Shanghai upgrade will enable the phased release of staked Ethereum by the end of March. Analysts have predicted a huge boost for liquid staking platforms, which offer better yield opportunities than staking directly.

On Feb. 18, DeFiLlama reported that more than 7 million ETH were staked on liquid staking protocols. This is roughly 42% of the entire amount staked and valued at $11.8 billion.

There's now over 7 million ETH tokens locked in ETH Liquid Staking Derivative protocols, $11.89 billion at the current price of ETH pic.twitter.com/chcSK52gXJ — DefiLlama.com (@DefiLlama) February 18, 2023

However, the recent enforcement action by the U.S. Securities and Exchange Commission may mean that Americans have to search overseas for crypto staking opportunities.

ETH Price Outlook

Ethereum prices have remained relatively flat over the past 24 hours. As a result, ETH was trading at $1,687 at the time of writing.

The asset hit resistance at just over $1,700 over the weekend and has since fallen back slightly during the Monday morning Asian trading session.

ETH remains down 65.4% from its November 2021 all-time high of $4,878.

Ethereum Price Chart by BeInCrypto