Ethereum's circulating supply has reached its lowest level since 2017, driven by a surge in staking and a decline in exchange reserves. The total value staked in Ethereum has hit an all-time high of 37.25 million ETH, equivalent to approximately $73.35 billion, effectively reducing market liquidity. Over 410,000 ETH, valued at around $808 million, has been added to staking since February 1st, indicating a strong investor preference for holding rather than selling. Exchange metrics further highlight the supply reduction, with the number of deposit addresses sending Ethereum to exchanges dropping to levels not seen since 2017. This suggests a reluctance among holders to sell, potentially setting the stage for amplified price movements when demand strengthens. While current demand remains subdued, with mixed spot market activity, any sustained increase in buying pressure could lead to significant price responses due to the tightened supply.