Ethereum is facing potential sell pressure as a record 855,158 ETH, valued at approximately $3.7 billion, sits in the validator exit queue, according to a Bitwise analyst. This growing queue indicates that stakers are looking to withdraw their ETH amid uncertain market conditions. As the Ethereum network restricts the amount of ETH that can be unstaked at a time, the current queue might take up to 15 days to clear. The unstaking trend may contribute to recent price declines, as staked ETH, like stETH, could trade at discounts, affecting their value as collateral and leading to risk cuts or liquidations that would necessitate spot ETH selling. Despite the potential for price pressure, the analyst cautioned that increased unstaking does not guarantee significant price drops, but rather could lead to a steady increase in supply that outpaces demand.

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