Ether (ETH) has experienced a decline exceeding 7% from its 2025 peak, coinciding with the validator exit queue reaching its highest level in 18 months on Wednesday.
As a proof-of-stake blockchain, Ethereum requires validators to stake ETH by locking funds to help secure the network.
Validators exiting the staking mechanism enter a queuing process known as the validator exit queue, which has seen a sharp surge recently, according to reports from staking service Everstake.
Currently, approximately 644,330 ETH, valued at around $2.34 billion, is queued for unstaking with an 11-day wait time, as monitored by ValidatorQueue. A similar uptick in the exit queue was observed in January 2024 after ETH prices declined 15% that month.
While unstaking can indicate that validators may plan to liquidate assets, this does not necessarily imply an outright sell-off.
Everstake clarified this is more indicative of a strategic shift rather than fear or collapse. Validators might be exiting to restake, optimize their operations, or rotate operators, signaling they are staying within the Ethereum ecosystem.
Investors and holders may also be locking in profits, which could lead to short-term selling pressure and a potential price correction.
Is This Profit Taking or Strategic Repositioning?
Despite the notable outflow, the entry queue has also grown, with 390,000 ETH, around $1.2 billion, lined up to stake. This suggests the net unstaked amount stands closer to 255,000 ETH.
The inflow has risen since June, particularly as treasury firms like SharpLink and Bitmine aggressively accumulate ETH, mostly intending to stake for additional yield.
The total number of active validators is near an all-time record at just under 1.1 million. Likewise, staked ETH reaches about 35.7 million—roughly 30% of the total supply—valued near $130 billion.
Ether Price Retreats from 2025 High
After touching a seven-month peak of $3,844 on Monday, Ether’s price pulled back roughly 7% to below $3,550 during Wednesday’s session as traders took profits.
ETH slightly rebounded to $3,643 at the time of writing and has gained more than 50% over the past month.
U.S. spot Ether ETFs have seen over $2.5 billion in inflows across the last six trading days, despite no staking ETF approval yet.
Apollo Capital’s chief investment officer Henrik Andersson noted an $8 billion net inflow into Ethereum’s mainnet through DeFi bridges in the last three months, alongside rising Ethereum ETF investments, suggesting robust interest from both on-chain participants and institutional investors.
Lido’s Liquid Staking Token Experiences Brief Depeg
Recent actions by Tron founder Justin Sun, who withdrew around $600 million of ETH from the Aave lending platform, triggered a brief depeg in Lido’s stETH—its liquid staking token—accompanied by reduced liquidity on Aave.
This event likely intensified the validator exit queue due to yield farmers hurriedly converting stETH back to ETH or selling on secondary markets, according to staking platform RedStone’s co-founder Marcin Kazmierczak.
Stay tuned for further updates as the Ethereum staking landscape continues to evolve amid price movements and operational strategies.
