Ethereum stakers are increasingly lining up to withdraw their ETH, resulting in a validator exit queue that hit an all-time high of 855,158 ETH, worth approximately $3.7 billion. This situation raises concerns about potential sell pressure on the cryptocurrency, especially as ETH’s recent price has dipped over 3%, following a near all-time high. Bitwise analyst Juan Leon noted that while unstaking does not typically cause immediate crashes, it may create a continuous supply pressure under market stress, especially if staked ETH trades at a discount. Some traders may unwind their positions by selling ETH to repay loans in response to rising borrowing costs, further exacerbating selling pressures in the market. Despite these concerns, Leon suggested that the current unstaking trend does not necessarily indicate an ongoing downward spiral for ETH's price. Key factors influencing ETH’s current trajectory include increased demand for ETH-related products and regulatory developments around digital assets.

Source 🔗