Ethereum News Today: Ethereum Unstaking Queue Surges to $3.8B Amid ETF Inflows and Price Volatility

Ether’s unstaking queue has surged to $3.8 billion, reflecting a significant buildup of assets awaiting withdrawal from staking positions, according to Cointelegraph [1]. This increase is primarily driven by the top three liquid staking platforms—Lido, EthFi, and Coinbase—which together account for over 532,000 ETH in queued withdrawals. The current number of active Ethereum validators stands at over 1.08 million, with approximately 29.5% of the total ETH supply staked, translating to around 35.3 million ETH [1].

Despite concerns about potential sell pressure from the unstaking activity, the market appears to be absorbing much of this volatility. Strategic reserves and spot ETH ETF holdings have increased by 140% since May 1, rising from 4.14 million ETH to over 10 million ETH [1]. Analysts suggest that these institutional inflows are playing a crucial role in balancing the market, potentially mitigating the downward pressure from unstaked ETH. Decentralized finance (DeFi) analyst Ignas noted that some investors may be using the current liquidity window to re-enter the market via staking ETFs, reshuffling exposure without fully exiting [1].

The ETH price currently hovers around $4,500, following a sharp correction triggered by elevated U.S. Producer Price Index (PPI) data, which raised inflation concerns [1]. The key support level for ETH is now identified at $4,200, with over $1.2 billion in long positions at risk of liquidation if the price breaks below this threshold. A successful defense of this level could stabilize the price and potentially pave the way for a move toward $5,000. If the price fails to hold above $4,200, the next critical support zone lies between $4,100 and $3,900, an area aligned with the 0.5–0.618 Fibonacci retracement levels and a previous higher high [1].

The Ethereum network’s shift to a proof-of-stake consensus mechanism has placed staking at the core of its economic model, creating both opportunities and risks for market participants. While the unstaking queue represents a notable liquidity event, it is not necessarily a bearish signal. Not all unstaked ETH will be sold immediately—some may be redeployed or retained for long-term strategic purposes. The market’s ability to manage this liquidity, supported by strong ETF inflows and institutional buying, will determine whether Ethereum can maintain its current trajectory or enter a phase of consolidation.

Source: [1] ETH Unstaking Queue Hits $3.8B: What Does It Mean for ETH Price? (https://cointelegraph.com/news/ether-unstaking-queue-hits-dollar3-8b-what-does-it-mean-for-eth-price)