ETH Unstaking Surge: Will ETF Demand Offset Potential Price Drop?

Ethereum Unstaking Volume Jumps to $3.2 Billion

Ethereum's staking ecosystem is experiencing a significant shift, with a record 877,106 ETH, valued at $3.2 billion, currently queued for withdrawal. This development arrives amidst growing anticipation for spot ETH exchange-traded funds (ETFs) and increasing holdings in strategic reserves.

Key Points:

• Record Unstaking: The amount of ETH queued for unstaking has reached a record high, led by platforms like Lido, EthFi, and Coinbase.
• Institutional Accumulation: Strategic reserves and ETF holdings have increased by 140% since May 1, indicating strong institutional demand.
• Price Support: The $4,200 level is a critical support for ETH, with a significant amount of leveraged positions at risk should it fall below this level.

According to data from ValidatorQueue, over 1.08 million active validators are currently operating on the Ethereum network, with approximately 29.5% of the total ETH supply staked – around 35.3 million ETH.

DeFi analyst Ignas noted that the increase in unstaked ETH is primarily driven by the top liquid staking platforms. Lido accounts for the largest share, with 285,000 ETH queued for withdrawal, followed by EthFi (134,000 ETH) and Coinbase (113,000 ETH).

ETF Impact on Ethereum Price

Despite the potential selling pressure from unstaked ETH, analysts believe that the recent accumulation by Ether treasury companies and spot ETH ETFs is absorbing much of the supply. Data indicates a substantial increase in the collective holdings of strategic reserves and ETFs, climbing to 10,008,263 ETH from 4,140,953 ETH since May 1.

The potential launch of ETH staking ETFs could further influence market dynamics, with some investors potentially freeing up liquidity to re-enter the market through these new investment vehicles. While the SEC's final deadline for approval is in 2026, Bloomberg ETF analysts suggest that approval could come as early as October 2025.

Potential Price Scenarios

The large volume of unstaked ETH presents both opportunities and risks for Ether's price. Continued institutional inflows could support prices, while a slowdown in demand could lead to market pressure.

Ether recently experienced a price correction, trading around $4,500. Key support levels to watch include the $4,370 - $4,160 range. A break below $4,200 could trigger liquidations. If Ether fails to hold the $4,200 level, the next key support lies between $4,100 and $3,900.