Ethereum News Today: Ethereum Staking Exit Queue Surpasses $1.9B as ETH Drops 12.3% Amid Bearish Debate

Ethereum (ETH) faces a pivotal moment as $1.9 billion worth of ether—approximately 520,000 tokens—becomes queued to exit staking, the highest volume in over a year. This development coincides with ETH’s price retreating to $3,545 from a peak of $4,040, sparking debates over whether the staking exit signals bearish pressure or reflects a maturing market. On-chain analytics and technical indicators paint a mixed picture, with conflicting signals between short-term cooling and underlying accumulation trends.

Santiment, a blockchain analytics firm, notes that ETH’s price ratio against Bitcoin has dropped 5.8% in the past 60 hours, a pattern historically associated with local tops. This underperformance follows a surge in FOMO-driven trading volume, echoing similar spikes observed in early May that preceded pullbacks. However, Santiment also highlights that declining social and trading volumes could pave the way for a second bullish wave, fueled by retail investors’ impatience to lock in profits [1].

Everstake, a staking service, attributes the record staking exit to strategic adjustments rather than panic. Validators are reportedly rotating strategies, optimizing operations, or securing profits amid growing institutional demand for spot ETH ETFs. Over 3.57 billion in inflows from institutions such as BlackRock and Fidelity in July 2025 underscores sustained institutional confidence, even as the staking exit queue continues to grow [2]. The process to clear the current queue is estimated to take 19 days, aligning with Ethereum’s fixed exit timeline.

Technical analysis reveals overbought conditions, with the relative strength index (RSI) surpassing 70—a threshold often signaling corrections. The MACD line, while remaining above the signal line, shows narrowing histogram bars, indicating weakening bullish momentum. Meanwhile, ETH’s recent dip from the upper Bollinger Band near $4,039 to the mid-$3,600s suggests a mean reversion to the mid-band level of $3,174. A breakdown below this support could target the lower Bollinger Band at $2,308 [3].

Critically, the negative balance of power (BoP) during the uptrend reinforces the likelihood of further consolidation, while the accumulation/distribution line hints at ongoing buying interest. These mixed signals—overbought indicators coexisting with strong accumulation—reflect a market balancing between caution and resilience.

The staking exit, though unprecedented in volume, does not align with panic-driven outflows observed in past corrections. Instead, it mirrors Ethereum’s ecosystem evolving toward institutional-grade infrastructure, where validators act as sophisticated participants rather than reactive investors. This distinction, however, may not quell near-term volatility as market participants weigh the implications of the staking shift against broader macroeconomic factors.

Source: [1] [Santiment ETH/Bitcoin Price Ratio Analysis] [https://coinedition.com/ethereum-eth-price-cools-conflicting-on-chain-signals/]; [2] [Everstake Staking Exit Queue and ETF Inflows] [https://coinedition.com/ethereum-eth-price-cools-conflicting-on-chain-signals/]; [3] [TradingView ETH Technical Indicators] [https://coinedition.com/ethereum-eth-price-cools-conflicting-on-chain-signals/]