Ethereum's stakers are increasingly lining up to unstake their tokens, potentially adding significant sell pressure on the cryptocurrency. As of Friday, the exit queue for Ethereum validators reached an all-time high of 855,158 ETH, valued at approximately $3.7 billion. This trend follows Ethereum's recent price rally, where it came close to its historical peak of $4,878 from November 2021. Bitwise analyst Juan Leon indicated that the mounting queue could be leading to Ethereum's price decline, which has dropped more than 3%. He explained that unstaked tokens might trade at a discount, affecting their value as collateral and triggering further ETH sales as traders unwind leveraged positions. Although the increase in unstaked ETH does not guarantee a price crash, it could exert downward pressure if it outpaces new demand. Currently, the unstaking process is expected to take about 15 days, highlighting a growing volatility concern in the Ethereum market amid rising geopolitical uncertainties and recent economic data showing heightened inflation.

Source 🔗