Ethereum unstaking by validators led to short-term sell pressure with analysts saying the moves likely reflect restaking and operator rotation rather than fear-driven exits.
10x Research attributed the pullback to the unwinding of leveraged DeFi positions, which destabilized the stETH peg.
Ethereum (ETH) price has come under selling pressure, dipping over 5% earlier today and slipping all the way to $3,550 amid the surge in unstaking ETH from validators and investors as the altcoin trades at an 18-month high. This unstaking means that validators could be freeing up their asset for a potential sale and profit-booking.
Ethereum Price Corrects Amid Surge in Validator Unstaking
According to ValidatorQueue data, approximately 644,330 ETH, worth a massive $2.34 billion, is currently awaiting withdrawal, with an estimated wait time of 11 days. A comparable surge in the exit queue occurred in January 2024, when ETH prices declined by 15% in the latter half of the month.
Source: Validato
