Billions in Ethereum Waiting to Be Unstaked Could Add Sell Pressure to ETH: Analyst
A growing queue of Ethereum stakers looking to withdraw their ETH has raised concerns about potential sell pressure impacting the cryptocurrency's price. The Ethereum network's validator exit queue surged to approximately 855,158 ETH, valued at around $3.7 billion, as of Friday. This record queue indicates an increasing number of holders eager to unstake their tokens amidst market uncertainty, driven by unfavorable economic signals such as high inflation. As ETH approaches a new all-time high, analysts warn that this mass exit of stakers may create a steady supply of ETH that could weigh down prices. Bitwise analyst Juan Leon suggested that if the unstaked ETH trades at a discount, it might trigger further sell-offs and negatively impact the price. While the situation poses risks for ETH's value, it may not result in an immediate crash. Observations indicate that as demand wanes due to the significant supply from stakers, prices may continue to decline if sales outweigh new demand.
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