Ethereum Faces Potential Price Drop with $10B Validator Exits
Ethereum is seeing significant changes as validators exit, with over 2.4 million ETH ($10 billion) queued for withdrawal from the Proof-of-Stake network. This has affected the price dynamics of Ethereum.
Institutional Influence
- Grayscale and other institutional investors are entering the validator queue to replace those leaving, aiming to stabilize the network.
- On October 6, Grayscale introduced staking for its US-listed spot Ethereum ETFs, marking a first in the US market.
Queue Time Extension
- Validator queue time now exceeds 41 days due to increased withdrawals.
- The exit queue is five times larger than the entry queue, raising concerns over potential sell pressure.
Given the 83% price increase over the past year, there is speculation that much of the $10 billion could be sold. Currently, Ethereum trades at $4,483.21, losing 4.51% in the last 24 hours, with a trading volume increase of 25.53%. If mass selling occurs, it may challenge the $4,200 support level.