Ethereum staking has reached a new high, with 32.4% of ETH now locked in staking contracts, marking a significant increase from near-zero levels in early 2021. This trend indicates growing investor confidence in staking as a long-term holding strategy. Simultaneously, Ethereum reserves on exchanges have dropped dramatically to 14.9 million ETH, down from over 33 million in 2021. This reduction in exchange-held ETH suggests a shift towards self-custody and staking, potentially impacting market liquidity and supply dynamics. Frequent negative netflows further highlight the trend of ETH moving off exchanges, reducing the amount available for immediate trading.