Ethereum News Today: Ethereum Sees $3.9B Unstaking as Institutional Demand Absorbs Pressure

Ethereum is currently navigating a significant unstaking event, with $3.9 billion in ETH expected to be released from staking positions within two weeks. The development has raised concerns about possible selling pressure and its impact on the token's price. However, market analysts suggest that robust institutional demand and ETF inflows are likely to absorb the increased supply without causing major price disruptions [1].

The unstaking activity is part of a broader trend in staking behavior, as validator exits have surged to record levels. On August 17, over 893,599 validators exited the network, marking a significant shift in the Ethereum ecosystem. This trend reflects possible changes in yield expectations or broader market conditions, yet overall network participation remains strong [1]. The validator admission rate has also shown signs of fluctuation, indicating a dynamic and evolving staking environment.

Institutional confidence in Ethereum is evident, with institutional investors purchasing 1.6 million ETH in August alone—worth approximately $7.5 billion. This substantial buying activity suggests a strong appetite for Ethereum among institutional players, reinforcing the market’s resilience in the face of increased unstaking. Analysts argue that even if half of the unstaked ETH were to be sold, the pressure would equate to just four days of institutional buying activity, indicating a high degree of market absorption capacity [1].

The current price trajectory of Ethereum also mirrors patterns seen in previous bull cycles. A comparison between the 2016–2017 bull run and the 2024–2025 period reveals similar "bear trap" dynamics, where Ethereum’s price temporarily dipped before rebounding. For example, in 2017, ETH fell below $20 before surging to record highs. In 2025, a similar pattern emerged, with ETH falling below $3,000 before recovering to around $4,500 [1]. Analyst Ted has emphasized that the $4,500 level is not the peak but rather the beginning of a longer-term upward movement.

Looking ahead, Ted forecasts a potential price path for Ethereum that could extend beyond $10,000. This projection is supported by the broader institutional interest and macroeconomic factors influencing the crypto market. With Bitcoin’s market capitalization surpassing $2.5 trillion—more than double its 2021 peak—Ethereum is likely to benefit from similar flows driven by the same regulatory and macroeconomic developments [1].

While the $3.9 billion unstaking event presents a short-term challenge, the overall market sentiment remains bullish. Strong ETF inflows and rising institutional demand continue to reinforce Ethereum’s position as a key player in the digital asset space. The market appears well-equipped to manage the increased supply, maintaining a positive trajectory for the token.

Source: [1] Ethereum Faces $3.9B Unstaking Amid Strong Demand and Bullish Price Outlook Beyond $10K (https://en.coinotag.com/ethereum-faces-3-9b-unstaking-amid-strong-demand-and-bullish-price-outlook-beyond-10k/)