Ethereum Unstaking FUD Unfounded as Staking Entry Queue Surges

The Ethereum validator exit queue peaked at just over 1 million ETH on Friday as the asset maintained its price gains, and selling pressure and profit-taking increased.

This is only natural, considering that Ether has more than doubled in price in a little over two months after spending a couple of years in the doldrums.

The big increase in the exit queue led to a lot of FUD about a massive Ether sell-off and price crash, but this is largely unfounded because the entry queue for staking has also surged.

The entry queue hit its highest level since 2023 on Sunday at 787,255 ETH worth around $3.4 billion, according to ValidatorQueue.

https://twitter.com/DefiIgnas/status/1962089505735024908?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank” rel=”nofollow noopener

Ether Moving From Weak to Strong Hands

However, it was pointed out that ETH in the entry queue has already been purchased, so its impact on spot prices has been seen, whereas the Ether in the exit queue has yet to be processed by markets.

There are currently around 35.7 million ETH staked, worth a whopping $157 billion and representing almost 30% of the entire supply, so the ecosystem is more than stable.

“The ‘Great Rotation’ is also clear in retail selling, while whales and institutions are buying,” said DeFi researcher Ignas.

There have been billions in Ether ETF inflows in August, digital asset treasuries are still accumulating the asset, and whales are publicly rotating billions from BTC into ETH, yet the price has not surged because retail is selling, he added in a separate post.

“Supply moving from weak to strong hands. Same setup before every big run.”

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“Capital has been rotating from Bitcoin into Ethereum,” said popular analyst Will Woo last week.

Meanwhile, VanEck CEO Jan van Eck labelled the asset “the Wall Street token” last week, explaining that financial institutions must adopt Ethereum to facilitate stablecoin transfers or risk falling behind.

Consensys founder Joseph Lubin made the bold prediction that “ETH will likely 100x from here. Probably much more,” because Wall Street needs it for decentralized rails. He also said that Ether will flip Bitcoin as the monetary base.

ETH Price Stalls

No such bullishness is happening at the moment on spot markets as weak retail hands continue to sell, sending the asset down 1.4% on the day as it trades at $4,380.

Ether has now retreated almost 12% from its peak of $4,950 a week ago, but remains within its range-bound channel that formed three weeks ago when the asset broke above $4,000.

Analysts are still confident that Ether has a long way to go in this bull run despite it stalling at current levels.

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