Ethereum stakers are lining up to withdraw their ETH, with the validator exit queue hitting an all-time high of 855,158 ETH, worth approximately $3.7 billion. This growing queue could create significant sell pressure on the cryptocurrency, particularly as it nears its previous all-time high. The unstaking process, while designed to prevent mass exits that could disrupt network stability, may lead to increased supply of ETH in the market. This situation could contribute to downward price pressure if the supply overwhelms demand. Analysts suggest that the potential for staked ETH to trade at a discount may trigger traders to liquidate positions, further exacerbating sales pressure. The current climate of uncertainty, combined with geopolitical factors and inflation reports, adds to the hesitance among investors. Although the exit of staked ETH doesn’t necessarily indicate a sudden crash, it can act as a steady supply tap that impacts prices, stressing the balance between demand and supply for ETH.

Source 🔗