Ethereum's unstaking queue hits a record high! 855,158 ETH awaiting release, 3.7 billion USD sell pressure alarm sounded.

The number of Ethereum validators exiting the queue surged to 855,158 ETH (approximately $3.7 billion) last Friday, setting a new historical record. Bitwise analysts warned that this batch of ETH about to be unstaked may create sustained selling pressure, especially when staking derivatives (such as stETH) trade at a discount, triggering leveraged strategy Close Position and Spot dumping. This wave of unlocking coincides with ETH's retreat after hitting a historic high, while geopolitical risks and inflation data exacerbate market Fluctuation; the unlocking queue is expected to take 15 days to clear.

The surge in the unbonding queue hits a record: Ethereum holders are queueing to unstake their tokens, a trend that could exert significant selling pressure on the ETH price. Data from the blockchain monitoring platform validatorqueue.com shows that the queue for Ethereum validators exiting reached a historical peak of 855,158 ETH on Friday. According to CMC data, as of last Friday night, the total value of this batch of tokens was approximately 3.7 billion USD.

Staking is the process by which holders of digital assets lock their tokens to maintain the security of the blockchain network and earn rewards. When market uncertainty increases, stakers may choose to unlock and redeem their crypto assets, transferring them to lower-risk assets or liquidating them.

Network Restrictions and Selling Pressure Transmission Mechanism: The Ethereum network limits the amount of ETH that can be unstaked within a specific time frame. This mechanism is designed to maintain network stability by preventing validators from exiting on a large scale. The current unstaking queue is expected to take 15 days to fully process.

Bitwise senior investment strategist Juan Leon told Decrypt that the upcoming release of ETH may be one of the driving factors behind the recent pullback in ETH prices. After approaching historical highs, the second-largest cryptocurrency by market capitalization has recently dropped several hundred dollars.

Leon explained that releasing the staking queue could have a negative impact on the ETH price, especially when staked ETH (such as the liquid staking derivation stETH) is trading at a discount compared to spot ETH.

"Tokens like stETH may trade at a discount. This discount can reduce their value as collateral, leading to risk mitigation, hedging, or even liquidation, ultimately resulting in the dumping of spot ETH," Leon said. He added that as the queue for un-staking grows, certain trading strategies may be forced to Close Position, especially when the cost of borrowing ETH spikes.

When this happens, "the leveraged 'stETH circular arbitrage' trades conducted through DeFi protocol liquidity pools will no longer be profitable," Leon pointed out, "traders repay loans by closing positions and selling ETH, creating synchronized selling pressure."

Market Background and Analyst Perspective Balance: Before the recent wave of unstaking, ETH approached its historical high of $4,878 set in November 2021 last Thursday. However, due to rising geopolitical uncertainties and a stronger-than-expected U.S. Producer Price Index (PPI) report, ETH retraced its gains.

Despite concerns about Ethereum validators exiting the queue, Leon cautiously pointed out that an increase in the amount of ETH waiting to be unstaked does not necessarily mean that the token price will continue to decline.

"Unstaking usually does not trigger a sudden crash, but when the market is under pressure, it may act like a continuously opened new supply faucet," he analyzed. "If its scale exceeds the market's new demand for ETH, it will put downward pressure on the price."

Conclusion: The $3.7 billion worth of ETH unlocking from the staking queue hangs over the market like the "Sword of Damocles." The chain reaction it triggers not only tests the stability of the staking derivation market but also verifies the support strength of Ethereum spot under the backdrop of continuous institutional capital inflow. The correlation between the unlocking process over the next two weeks and ETH price fluctuations will provide key cases for managing liquidity risk in staked assets.