Ethereum stakers are queuing to withdraw their ETH, with the validator exit queue reaching a record 855,158 ETH worth approximately $3.7 billion. This situation may apply downward pressure on ETH's price, particularly as the cryptocurrency was nearing an all-time high before experiencing a 3% decline. The unstaked Ethereum is expected to increase supply, which could affect demand dynamics. Analysts suggest that in a stressed market, the potential for selling pressure might increase, especially if staked ETH trades at a discount. As such, the expected selling could emerge from leveraged positions in decentralized finance (DeFi) protocols. Despite the current sell pressure threats, analysts caution that large-scale unstaking does not necessarily mean a crash, but it can introduce constant supply that presses prices lower.

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