Ethereum News Today: Investors Navigate Ethereum's Staking Exodus and Fed Uncertainty

Ethereum faces short-term downward pressure as a $3.9 billion staking unlock looms, driven by validators preparing to exit the network ahead of macroeconomic uncertainty tied to the upcoming Jackson Hole symposium and the Federal Reserve's potential rate-cut decision in September. The exit queue currently stands at 910,461 ETH, with a 15-day waiting period for the supply to become active in the open market. This trend is compounded by Ethereum ETF outflows, with $197 million in daily withdrawals recorded, the second-highest on record. Analysts, including Timothy Misir from BRN, have highlighted the dual risk of the unlocking supply and macroeconomic uncertainty, emphasizing $4,400 as a critical support level for the second-largest cryptocurrency by market capitalization.

The Ethereum price has recently fallen nearly 4.5% from a two-week high of $4,350 to $4,150, aligning with a broader de-risking sentiment in both crypto and equity markets. Investors appear to be locking in gains ahead of the Fed's anticipated rate-cut decision. Xu Han from HashKey Capital attributed the exit queue to profit-taking behavior, noting Ethereum’s proximity to its 2021 all-time high and the rising borrowing rates on platforms like Aave, which have made leveraged staking less attractive. These factors have prompted traders to unwind positions and repay loans, further contributing to the unstaking trend.

Network activity has also declined, with Ethereum’s active addresses falling to nearly 600,000 from a peak of 841,000 on July 30. The drop in new address growth—down 28% to 138,000—suggests a slowdown in adoption. Jake Ostrovskis from Wintermute highlighted the de-risking sentiment, noting that investors are preparing for macroeconomic clarity after a week of weak economic data. The Ethereum market is also facing a structural imbalance, with $3.91 billion in exit demand far exceeding the $1.09 billion in new staking demand. This imbalance could lead to increased selling pressure once the staked ETH is unlocked, though experts like Han from HashKey Capital remain cautiously optimistic, citing strong institutional ETF inflows and treasury demand as potential mitigants.

The broader market context shows Ethereum gaining traction over Bitcoin as a market leader, with ETFs attracting over $2.3 billion in weekly inflows compared to Bitcoin’s $122 million drawdown. Ethereum’s price is currently trading between $3,950 and $4,050 and has successfully broken through the $3,900 resistance level. Analysts anticipate further upward movement, with next key targets at $4,200 and $4,400, though volatility remains high ahead of the Fed’s September decision. The base scenario for Ethereum is a consolidation phase between $3,900 and $4,400, pending developments in Fed policy and the performance of tech stocks, according to Arthur Azizov of B2 Ventures.

Institutional interest in Ethereum continues to grow, with Ethereum ETFs holding 5.08% of the total supply. If inflow trends continue, this percentage could surpass Bitcoin’s 6.38% ETF-held supply, according to Timothy Misir. Meanwhile, macroeconomic factors, including the U.S. Producer Price Index and weak labor market data, are raising concerns about inflation and economic stability. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium on August 22 is expected to provide clarity on the path forward for interest rates, with analysts split on the likelihood of a rate cut. A hawkish stance from the Fed could further pressure Ethereum and other risk assets, compounding the challenges posed by the staking unlock and ETF outflows. Despite these headwinds, long-term optimism for Ethereum remains strong, with experts forecasting price targets of $6,000 to $8,000 by year-end.

Source:

[1] Ethereum whale opens $16.3M long as ETH price eyes bounce (https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce)

[2] Ethereum's Big Backers Unleash Billions to Push Into Wall Street (https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html)

[3] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html)

[4] All eyes on Fed Chair Powell's final Jackson Hole speech (https://finance.yahoo.com/news/rate-cut-watch-all-eyes-on-fed-chair-powells-final-jackson-hole-speech-100023617.html)

[5] Federal Reserve Bank of Kansas City to Host Annual ... (https://www.kansascityfed.org/newsroom/2025-news-releases/kansas-city-fed-to-host-annual-jackson-hole-economic-policy-symposium-2025/)

[6] Ethereum Price at Two-Week Low as $4B Supply (https://decrypt.co/335938/ethereum-price-two-week-low-4b-supply-overhang-looms)

[7] Alts on the Starting Line: Market Gears Up for a Move (https://swapter.io/blog/alts-on-the-starting-line-market-gears-up-for-a-move-en)