Ethereum [ETH] continues to show sustained staking demand, with the validator exit queue remaining at zero. AMBCrypto previously reported that the empty exit queue reflected long-term holder conviction, contrasting with last year’s market crash, when ETH queued for exit peaked at 2.6 million ETH and the estimated waiting time reached about 44 days.

Validator entry and exit queues are part of Ethereum’s proof-of-stake design, limiting how quickly validators can join or leave the active set. As a result, queue length is closely watched because it shows whether more ETH is waiting to be staked or whether validators are lining up to withdraw from active validation.

The queue dynamic has since reversed. It now takes nearly 44 days to enter the validator set, with just over 2.5 million ETH waiting in the validator entry queue. The willingness of holders to wait about six weeks before beginning ETH staking and earning rewards has been cited as a sign of persistent demand for staking.

Staking demand persists as exchange reserves fall

Falling Ethereum reserves on exchanges pointed to continued accumulation trends. In the short term, AMBCrypto noted that an increase in smart contract deployment and median fees, combined with leverage remaining under control, was viewed as a constructive setup for a potential price recovery.

Lower exchange reserves are commonly tracked because coins held off exchanges are generally less immediately available for spot selling, although the metric does not identify holder intent on its own. In Ethereum’s case, the exchange-reserve trend added another data point alongside the entry queue and staking participation.

Institutional participation also remained visible alongside the cleared ETH staking exit queue. Bitmine Immersion Technologies [BMNR] announced on Monday, July 27, that its total holdings had reached $11.8 billion, according to an official announcement:

The company said the figure represented the sum of crypto, total cash and marketable securities, and “moonshots.” Bitmine reported holdings of 5,787,414 ETH, valued at $1,948 per ETH, equal to 4.8% of the total ETH supply.

Bitmine’s total staked ETH stood at 4,917,189 ETH, worth $9.6 billion at $1,948 per coin. Its projected staking reward was $299 million on an annualized basis. The company also announced that it had bought another 9,946 ETH over the previous week.

Bitcoin and altcoin analyst Merlijn the Trader wrote in a post on X that nearly 34% of Ethereum’s total supply was locked in staking: https://x.com/MerlijnTrader/status/2080624041921224973?s=20

The analyst also noted that ETH staking earned 2.62%, down from 3.05% a year earlier. Ethereum staking yields can move lower as more ETH participates in validation, since protocol rewards are distributed across a larger active validator base. The continued demand to stake ETH despite declining rewards was presented as another indication of long-term holder conviction.

Analysts compare ETH price with average cost basis

Crypto analyst Burak Kesmeci said Ethereum’s average cost basis was $2,305, compared with ETH’s market price of $1,938. Based on that comparison, he described the leading altcoin as still effectively “cheap.”

Average cost basis is often used as an on-chain reference point for whether aggregate holders are in profit or underwater, but it is not a timing tool by itself. Together with rising institutional participation and signs of long-term holder conviction, the data suggested that Ethereum was continuing to attract longer-term investors despite market uncertainty.

However, AMBCrypto also noted that other indicators, including MVRV and profitability, showed it was still too early to call a bottom for either Ethereum or Bitcoin.