Ethereum News Today: Institutional Exodus and Unstaking Surge Cloud Ethereum’s Path Forward

Ethereum treasuries have reached a record $17 billion in holdings, reflecting sustained institutional interest in the second-largest cryptocurrency. However, recent developments in the spot Ethereum ETF market suggest shifting dynamics among investors, with significant outflows and a growing unstaking queue creating uncertainty about Ethereum’s price trajectory.

On Monday, spot Ether exchange-traded funds (ETFs) recorded nearly $197 million in outflows—the second-largest daily outflow since their launch, according to market data provider SoSoValue. This figure marked a continuation of a trend that began last week, with a total of $256 million in outflows across two days. The largest outflows were attributed to BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity’s Ethereum Fund (FETH), which saw outflows of $87 million and $79 million, respectively [1].

BlackRock’s ETHA remains one of the most significant institutional holders of Ether, with holdings valued at approximately $15.6 billion as of Monday. This figure reflects a 1.5% decline from the $15.8 billion held by the fund as of the previous Friday, in line with Ethereum’s roughly 6.5% price drop over the same period [1]. The ETF’s performance underscores the sensitivity of institutional Ethereum holdings to price volatility and market sentiment shifts.

The outflows from Ethereum ETFs coincide with a surge in the unstaking queue on the Ethereum proof-of-stake network, which has reached an all-time high of 910,000 ETH, valued at approximately $3.9 billion [1]. This queue represents the amount of Ether awaiting withdrawal by validators, and the process of unstaking now takes a minimum of 15 days and 14 hours. The growing unstaking activity raises concerns among market observers about a potential “unstakening,” a term referencing a possible market correction driven by increased ETH supply as validators exit the network [1].

The ongoing unstaking surge has also drawn attention from industry figures, including Bitcoin advocate Samson Mow, who has expressed caution about Ethereum’s price trajectory. Mow warned on social media that Ethereum’s price relative to Bitcoin could potentially revert to “0.03 or lower,” down from the current 0.036 BTC [1].

Despite these pressures, Ethereum ETFs have been gaining traction relative to Bitcoin ETFs. According to analyst Hildobby, as of Monday, the percentage of Ethereum’s total supply held in ETFs stood at 5%, slightly lower than the 6.4% for Bitcoin. However, if current growth rates continue, Ethereum ETFs could surpass Bitcoin ETFs in terms of total supply held by September [1]. This dynamic reflects a broader shift in investor appetite, with growing interest in Ethereum’s use cases and upgrades, such as the recently completed Ethereum 2.0 transition.

Ethereum’s price has faced additional headwinds from macroeconomic factors, particularly ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech. The cryptocurrency has dipped below $4,500 and is currently trading near $4,180, just above a critical support band at $4,000–$4,100 [5]. Market participants are closely watching Powell’s remarks, as they could influence broader risk appetite and capital flows into the crypto market. A hawkish stance from the Fed could push Ethereum toward $3,500, while a dovish outcome might provide the momentum needed to reclaim the $4,500–$4,800 range [5].

Technical indicators also reflect a bearish short-term outlook, with the MACD turning negative and the RSI drifting toward 50, suggesting weak momentum. A break below the $4,000 level would expose Ethereum to further downside, potentially targeting $3,500. Conversely, a breakout above $4,500 could set the stage for a retest of Ethereum’s all-time high at $4,868 [5].

On the institutional front, Ethereum ETFs have seen a string of redemptions, with $196.6 million in outflows recorded in a single day, marking the second-largest withdrawal since their launch [5]. These outflows, combined with the growing unstaking queue, have raised concerns about potential supply shocks as large volumes of ETH could enter the market in the coming weeks. However, some analysts argue that the crypto market has sufficient liquidity—such as $160 billion in stablecoin reserves on exchanges—to absorb this overhang, provided macro conditions remain favorable [5].

Looking ahead, Ethereum’s price trajectory will depend on a combination of factors: the resolution of macroeconomic uncertainty, the impact of validator unstaking, and the continued evolution of institutional Ethereum adoption. While short-term volatility appears inevitable, the long-term bull case remains anchored in Ethereum’s ongoing upgrades, network usage, and institutional demand. For now, the cryptocurrency is consolidating in the $4,000–$4,500 range, awaiting clarity on the broader economic and market environment.

Source: [1] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest) [2] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html) [3] Evolve Ether ETF | Cryptocurrency (https://evolveetfs.com/product/ethr/) [4] Ethereum Price Forecast: ETH bounces off (https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-bounces-off-4-100-as-whales-show-resilience-202508210112) [5] Ethereum Price Forecast: ETH-USD at $4,180 Ahead of (https://www.tradingnews.com/news/ethereum-price-forecast-eth-usd-at-4180-usd)