As Ethereum stakers prepare to withdraw their ETH, the growing validator exit queue, now at 855,158 ETH valued at roughly $3.7 billion, could negatively impact the cryptocurrency's price. Bitwise analyst Juan Leon indicates that this surplus of unstaked ETH may generate sell pressure, particularly since staked assets can trade at a discount, reducing their collateral value and triggering defaults or liquidations that force further ETH sales. While ETH was close to its all-time high, a recent price drop of over 3% followed unsettling market conditions. Although unstaking doesn't typically result in a catastrophic price crash, it could steadily increase supply and lower prices if it outstrips demand. Leon points out that as more ETH becomes unstaked, risky leveraged trades could become unprofitable, amplifying sell pressure. Despite this, he notes that reduced staked ETH does not automatically equate to a consistent price decline, as systemic pressure from liquidation events can fluctuate based on market conditions.

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