Ethereum News Today: Ethereum Validator Exit Queue Hits 18-Month High as ETH Dips 7% from July 2025 Peak

Ether’s price retreated over 7% from its July 2025 peak as Ethereum’s validator exit queue surged to an 18-month high, signaling a wave of profit-taking and repositioning among stakers. The queue, which reached 644,330 ETH (approximately $2.34 billion) as of July 24, reflects a record 11-day wait for validators to unstake their holdings. This follows a similar spike in January 2024, during which ETH prices dropped 15% in the latter half of the month [1].

The surge in unstaking activity has sparked speculation about market sentiment, though staking protocol Everstake clarified that the trend does not indicate panic but rather a “shift” in validator strategies. The firm noted that many participants are exiting to restake, optimize operations, or rotate operators, rather than abandoning the network entirely [1]. Meanwhile, the entry queue—where 390,000 ETH (about $1.2 billion) awaits activation—suggests that net unstaking is limited to roughly 255,000 ETH. This dynamic highlights a balance between outgoing and incoming capital, with activation delays now exceeding six days—the longest since April 2024 [2].

Institutional activity has also contributed to the exodus. Treasury firms like SharpLink and Bitmine have aggressively accumulated ETH since early June, prompting institutional holders to unstake and transfer assets for strategic staking [2]. Additionally, Tron founder Justin Sun’s withdrawal of 60,000 ETH from the Aave lending platform triggered a temporary depeg in Lido’s stETH token and liquidity constraints, exacerbating market volatility [1]. Marcin Kazmierczak of RedStone observed that panicked yield farmers attempted to convert stETH back to ETH or sell on secondary markets, further amplifying the exit queue [1].

Despite the short-term sell pressure, Ethereum’s staking ecosystem remains robust. Active validator numbers hit a record 1.1 million, with 35.7 million ETH (nearly 30% of total supply) staked, valued at $130 billion [1]. This growth is bolstered by renewed institutional confidence, driven in part by the U.S. Securities and Exchange Commission’s May 2024 ruling that staking does not constitute a securities violation. Andy Cronk of staking service Figment noted a more than 100% increase in institutional staking delegations since the decision [2].

The interplay between unstaking and entry congestion may stabilize ETH’s price trajectory. While the exit queue underscores short-term volatility, the persistent demand for staking—evidenced by $2.5 billion in inflows to U.S. spot ETH ETFs over six trading days—suggests that institutional appetite could offset profit-taking pressures [1]. David Shuttleworth of Anagram emphasized that queue dynamics often balance over time, as older stakers lock in gains while newer participants join [2].

Ether’s price has retreated to around $3,643 from a seven-month high of $3,844, but it remains up over 50% in the past month [1]. Analysts caution that the market’s focus will shift to whether institutional staking adoption can sustain demand. Henrik Andersson of Apollo Capital highlighted the $8 billion in DeFi bridge inflows into Ethereum’s mainnet over three months, underscoring the network’s appeal to both onchain participants and traditional institutions [1].

Source: [1] [Ethereum Validator Exit Queue Tops $2B as Stakers Rush to Quit After 160% Rally] [https://cryptoadventure.com/ethereum-validator-exit-queue-tops-2b-as-stakers-rush-to-quit-after-160-rally/]

[2] [Ethereum Price Forecast: ETH falters before $3800 as validator queue spikes to eighteen-month high] [https://www.mitrade.com/insights/news/live-news/article-3-981845-20250724]