Over $10 Billion in Ethereum Waiting to Be Withdrawn as Validators Prepare to Cash Out Could This Trigger an ETH Price Drop?
Record 2.44M ETH Worth $10B in Validator Exit Queue with 42-Day Wait as Institutional Holdings Hit 12.47M ETH, and ETF Inflows Reach $621.4 in October
A record $10 billion worth of Ethereum (2.44 million ETH) is currently stuck in the validator exit queue, as stakers rush to withdraw their funds—raising concerns about a possible ETH price correction.
Data from Beaconcha.in shows that validators leaving the network now face an average wait time of over 42 days, marking one of the longest withdrawal backlogs since Ethereum shifted to its proof-of-stake (PoS) system.
Under Ethereum’s PoS mechanism, validators who decide to stop staking must first join an exit queue, where withdrawals are processed gradually to maintain network stability and security.
Record $10B in Validator Exits Sparks Concern of ETH Price Dip to $3,800
The massive $10 billion worth of ETH currently in the validator exit queue is raising concerns about profit-taking pressure, as Ethereum trades near $4,500—just 9.75% below its all-time high.
Market analysts caution that if a significant portion of this unstaked ETH is eventually transferred to exchanges, it could create short-term selling pressure and negatively impact market stability.
However, not all withdrawn ETH is expected to be sold immediately—some may be allocated to liquid staking, restaking platforms, or other yield-generating services. Still, even a small portion hitting open markets could trigger a price correction toward the $3,800–$4,000 support range.
The shift highlights growing caution among Ethereum stakers, as staking yields fall to just 2.86% APR, leading some participants to reallocate funds toward higher-yield opportunities.
However, despite the rising number of exits, confidence in the network remains strong—with nearly 498,000 ETH still waiting in the entry queue, showing that new validators continue to join and support Ethereum’s long-term growth.
Can Institutional Demand Absorb $10B in Validator Selling Pressure?
Institutional interest in Ethereum is rapidly rising, helping to balance out the bearish pressure from ongoing validator withdrawals.
Data from StrategicETHReserve shows that corporate treasuries now hold about 5.66 million ETH (4.68% of total supply), while spot Ethereum ETFs collectively own 6.81 million ETH (5.63%)—pushing total institutional holdings above 12.47 million ETH.
In October alone, U.S.-listed spot Ether ETFs recorded $621.4 million in net inflows, more than double September’s $285.7 million, according to SoSoValue.
Earlier in August, inflows peaked at $3.9 billion, reflecting a strong and sustained appetite for Ethereum among institutional investors, even as stakers prepare to exit.
Experts See $10K Ethereum Within Reach as Liquidity and Market Conditions Strengthen
Crypto hedge fund XWIN Finance forecasts that Ethereum (ETH) could realistically hit $10,000 in the current market cycle, citing strong global liquidity, declining exchange reserves, and the potential for a “revaluation phase” similar to Bitcoin’s historical rallies after liquidity surges.
Echoing this outlook, BitMEX co-founder Arthur Hayes reaffirmed in a July blog post that ETH could reach $10,000 by the end of 2025, attributing the prediction to the expanding U.S. money supply and what he called a “wartime economy” driven by President Donald Trump’s policies.
Ethereum Eyes $4,770 Breakout Amid Strong Bullish Momentum
Ethereum is showing renewed strength on the 1-hour Binance chart, where the price continues to trade above the 50-EMA at $4,492.92, confirming bullish control in the short term.
Following a brief pullback to the low $4,400 range on October 5, ETH has been building a clear ascending structure, forming higher highs and higher lows — a classic sign of an ongoing recovery trend.
The current focus is on the $4,600 resistance zone, which has capped price action several times in recent sessions. A decisive breakout and sustained close above this level could trigger a sharp rally toward $4,770, the next key resistance, and potentially open the path to $4,950–$5,000 if momentum continues.
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Conversely, if Ethereum fails to hold above $4,480 support (50-EMA), short-term consolidation could occur before another upward push. Overall, the technical outlook remains bullish, supported by rising trading volume and strengthening market sentiment.
The candlestick formations reveal consistent buying pressure, highlighted by a series of strong green candles that lifted Ethereum’s price from around $4,500 to its current levels.
Trading volume has also shown increased participation during the recent rally, signaling healthy market interest. However, the latest volume bars suggest a brief cooling-off period, which is normal during consolidation phases before the next potential move.
Overall, technical indicators point to a bullish outlook in the near term, with $4,770 emerging as the next key target—roughly a 4% gain from current prices. A clean breakout above $4,770, supported by strong volume, could pave the way for a further advance toward the $4,956 resistance zone, reinforcing Ethereum’s short-term bullish trend.
