Ethereum’s Unstaking Queue Reaches New Heights: What Does it Mean for ETH Price?
Ethereum’s ecosystem has reached new heights, with 877,106 ether (ETH) worth $3.88 billion waiting to be unstaked, according to validator queue data. This significant increase has sparked interest among investors and analysts, who are trying to understand its implications for the ETH price. The current number of active validators is over 1.08 million, with 29.5% of the total ETH supply, approximately 35.3 million ETH, locked in the queue.
Key Players Driving the Unstaking Queue
Decentralized finance analyst Ignas notes that the increase in ETH waiting to be unstaked is largely driven by the three most liquid platforms: Lido, ETHFI, and Coinbase. Lido leads with 285,000 ETH queued for withdrawal, followed by ETHFI with 134,000 ETH and Coinbase with 113,000 ETH. While this increase could mean a massive amount of profit is underway, Ignas believes that the latest accumulation and purchasing power of ether finance ministries and spot-ETH-stock exchange funds (ETFS) will absorb a large part of the sales pressure.
Strategic Reserves and ETF Stocks on the Rise
Data from Strategicethreserve.xyz shows that the collective stocks of strategic reserves and ETFs have risen by 140% since May 1st, increasing from 4,140,953 ETH to 10,008,263 ETH. This strong increase underlines a rapid consolidation of ether holdings in the hands of large institutional and corporate actors. Ignas emphasizes another bullish narrative associated with the potential start of ETH-staking ETFs, which could allow investors to free up liquidity and later get back into the market through these products, effectively reformulating their exposure without leaving the ETH market as a whole.
Impact on ETH Price
The high number of ETH in the queue is a double-edged sword for the price campaign of ether. If institutional inflows keep pace, ETH could hold its floor and even set itself up for another leg. However, if these inflows slow down, the deficit of unstaked ETH could weigh on the market. Ether’s price faced a sharp correction on Thursday and Friday after a PPI print (Hot US Producer Price Index) that ignited inflation concerns. With prices around $4,500, Ether could mark the daily order block or the internal liquidity zone between $4,370 and $4,160 before switching to the level of $5,000.
Support Levels and Liquidation Risks
The Crypto Intelligence platform Kiyotaka reported a large ETH liquidation cluster between $5,000 and $5,200 on Wednesday. In the last 24 hours, however, the pressure has shifted to longs, with over $1.2 billion of liquidation risks near $4,200. If Ether fails to hold the level of $4,200, the next key support is between $4,100 and $3,900, which aligns with the 0.5–0.618 Fibonacci retracement range and is often referred to as the “golden zone” for uptrend retest.
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