Ethereum News Today: Ethereum Unstaking Queue Surges to $3.8B as Staked ETH Near 35.3M

The Ethereum unstaking queue has surged to a record $3.8 billion, with 877,106 ETH currently waiting for withdrawal, according to data from ValidatorQueue. This backlog is driven primarily by the top three liquid staking platforms: Lido, which has 285,000 ETH queued for unstaking; EthFi, with 134,000 ETH; and Coinbase, holding 113,000 ETH in its unstaking queue. The average wait time for withdrawal is currently 15 days, highlighting the high volume of activity within the Ethereum staking ecosystem [1].

Active Ethereum validators now number over 1.08 million, with approximately 29.5% of the total ETH supply—around 35.3 million ETH—already staked. This indicates a growing institutional and retail interest in earning staking rewards, a feature central to Ethereum’s post-merge consensus mechanism. The rise in unstaking activity suggests that a significant portion of these staked assets is being prepared for liquidity use, whether for trading, further investment, or strategic reallocation [1].

Alongside the surge in unstaked ETH, data from strategicethreserve.xyz reveals that combined holdings of strategic reserves and spot Ether ETFs have increased by 140% since May 1, from 4.14 million ETH to 10.008 million ETH. This rapid accumulation reflects a consolidation of supply into the hands of major institutional and corporate entities. Analysts suggest this trend may be absorbing much of the potential selling pressure from the unstaking queue, thereby stabilizing the price [1].

The price of Ether has recently faced downward pressure following a strong U.S. Producer Price Index (PPI) reading, which raised concerns about inflation and delayed expectations for rate cuts. As of the latest data, ETH is trading around $4,500, with key support levels forming between $4,370 and $4,160. If the price tags $4,200, over $1.2 billion in long positions become vulnerable to liquidation, according to data from CoinGlass [1].

If Ether fails to hold this critical support level, the next potential support zone lies between $4,100 and $3,900. This area aligns with the 0.5–0.618 Fibonacci retracement range and overlaps with a previous higher high, making it a key “golden zone” for potential retests in an uptrend. The outcome of this price consolidation will be crucial in determining whether Ethereum continues its bullish momentum or faces a deeper correction [1].

DeFi analyst Ignas notes that the current surge in unstaking activity may not necessarily be bearish for ETH. In fact, it could signal a strategic liquidity shift among institutional investors preparing to re-enter the market via staking ETFs. While the U.S. Securities and Exchange Commission (SEC) has set a final approval deadline for such products in April 2026, Bloomberg ETF analyst Seyffart suggests a potential green light as early as October 2025 [1]. This possibility could further reshape liquidity dynamics, as investors may be using current market conditions to reposition capital ahead of potential new investment vehicles.

The Ethereum unstaking queue, while a significant indicator of market activity, is not inherently bearish. Instead, it reflects the maturation of the Ethereum ecosystem and the evolving behavior of institutional participants. As staking and unstaking continue to drive liquidity in and out of the market, the role of ETFs and strategic reserves becomes increasingly important in stabilizing price action and supporting broader adoption [1].

Source: [1] Cointelegraph - Ether 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?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)