Ether dipped more than 7% from its 2025 high as the queue for validators and investors to unstake the asset hit an 18-month high on Wednesday. 

Ethereum is a proof-of-stake network that requires validators to stake the asset and lock up funds to secure the network.

Validators that want to exit Ethereum’s staking system need to go through a validator exit queue, “and in the past few days, the number has absolutely surged,” staking protocol Everstake reported on Wednesday.

There is currently 644,330 ETH worth around $2.34 billion lined up to leave with an 11-day wait, according to ValidatorQueue. There was a similar spike in the exit queue in January 2024 when ETH prices fell 15% in the second half of the month. 

Unstaking could mean validators are looking to free up the asset for sale, but that isn’t always the case.

Everstake said that it wasn’t a sign of fear or collapse, but a “shift,” adding that validators are likely exiting to “restake, optimize or rotate operators, not leaving Ethereum.”

They added that investors and holders also may want to lock in profits, “because it’s natural to assume that some stakers are preparing to sell, which could create short-term sell pressure and potentially lead to a price correction.”

Profit taking or repositioning? 

Despite the apparent exodus, there is also 390,000 ETH worth around $1.2 billion in the entry queue, meaning that the net amount being unstaked is only around 255,000 ETH.

Additionally, the entry queue has significantly increased since early June, which was when Ether treasury companies such as SharpLink and Bitmine started aggressively accumulating the asset. The majority of corporate strategy firms have said they will stake ETH for additional yields. 

Related: Ether Machine founder claims ETH outperformed BTC over past 10 years

The number of active validators is also at an all-time high of just below 1.1 million, as is the amount staked, which is around 35.7 million ETH, or almost 30% of the total supply, worth around $130 billion. 

Ether price dips from 2025 high

The asset has retreated around 7% from its seven-month high of $3,844, which it hit on Monday, dipping below $3,550 during late trading on Wednesday as traders lock in profits. 

ETH prices had recovered marginally to $3,643 at the time of writing and remain up more than 50% over the past month. 

There has also been a huge demand from US spot Ether ETFs, which have seen more than $2.5 billion in inflows over the past six trading days, and that is without a staking ETF being approved. 

“We have seen $8 billion in net inflows through DeFi bridges into Ethereum mainnet over the last three months and a sizeable increase in Ethereum ETF inflows, despite BTC ETF seeing outflows,” Apollo Capital’s chief investment officer, Henrik Andersson, told Cointelegraph.

“This demonstrates interest from onchain natives and institutions,” he added. 

Lido liquid staking token briefly depegs 

Tron founder Justin Sun also recently removed around $600 million worth of ETH from the Aave DeFi lending platform, causing a brief depeg in stETH (STETH), Lido’s liquid staking token, and a sharp drop in liquidity on Aave. 

This may have added to the exit queue as panicked yield farmers attempted to convert stETH back to ETH, or sell it on secondary markets, observed Marcin Kazmierczak, co-founder at RedStone staking platform. 

Magazine: High conviction that ETH will surge 160%, SOL’s sentiment opportunity: Trade Secrets

]]> https://earlybirdsinvest.com/ether-stumbles-as-eth-validator-exit-queue-hits-18-month-high/feed/ 0 49350 https://earlybirdsinvest.com/bitcoin-soars-past-111000-as-wall-street-stumbles/ https://earlybirdsinvest.com/bitcoin-soars-past-111000-as-wall-street-stumbles/#respond Thu, 22 May 2025 12:43:53 +0000 https://earlybirdsinvest.com/bitcoin-soars-past-111000-as-wall-street-stumbles/

One key reason is the growing belief that Bitcoin can act as a safe alternative when traditional currencies or markets seem shaky. Moody’s recent downgrade of US government debt added to those concerns, which pushed some investors to look for other places to put their money.

On top of that, calmer trade relations between the US and China have created a better environment for digital assets like Bitcoin.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Crypto Fees Explained: How Not to Overpay? (Animated)

Lower inflation numbers in the US have also helped. With less fear of aggressive interest rate hikes, investors have shown more interest in stocks and cryptocurrencies.

Bitcoin’s strong performance is not just about the news cycle. Its technical indicators also support the price surge. After breaking through $109,000, it passed several key resistance levels. The Fear and Greed Index shows investors are confident, but not overly so. The RSI is near 70, which suggests healthy buying interest.

James Butterfill from CoinShares told CNBC that Bitcoin’s rise was “driven by a mix of positive momentum, growing optimism around US crypto regulation, and continued interest from institutional buyers“.

According to a report from Forbes, Austin King, co-founder of Omni Network, pointed to three major forces driving Bitcoin’s rally.

First, demand from US-based spot exchange-traded funds (ETFs) has been high, with inflows in May alone topping $3 billion. Second, new laws like the bipartisan stablecoin bill in the Senate and Texas’s idea of a state Bitcoin reserve make investors feel more confident about long-term holdings. Third, ongoing inflation concerns push everyday and institutional buyers to look at Bitcoin as a hedge.

Saifedean Ammous, author of The Bitcoin Standard, recently joined a discussion on how to handle spam on the Bitcoin network. What did he say? Read the full story.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin’s recent price movement near the $85,211 level has revealed several technical red flags, suggesting potential weakness in its bullish momentum. Despite multiple attempts to break through this critical resistance, BTC has struggled to maintain upward traction, signaling a possible shift in market sentiment.

The inability to reclaim key resistance zones has left the bulls vulnerable while sellers attempt to capitalize on the recent slowdown. If BTC fails to hold above this support, a deeper retracement could be on the horizon. 

Technical Analysis: Signs Of Weakness In Bitcoin’s Price Action

Bitcoin’s price appears vulnerable as it struggles to sustain momentum and break above $85,211, raising concerns about the strength of its bullish trend. The recent pullback points to a change in market dynamics toward increasing bearish pressure.

Several key technical indicators are flashing signs of weakness, suggesting a decline in bullish momentum. The Relative Strength Index (RSI), which previously climbed above the 50% threshold, is now retreating. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows slowing upside movement, with the MACD line approaching a bearish crossover, hinting at possible downside movement for the flagship asset.

Additionally, Bitcoin remains below the 100-day Simple Moving Average (SMA), reinforcing resistance and making a breakout attempt more challenging. If buyers fail to regain strength, BTC could face increased selling pressure, leading to a drop toward key support levels. However, a resurgence in buying interest and a decisive move above $85,211 might help BTC regain bullish traction and shift market sentiment in favor of the bulls. 

Successfully breaking through this key resistance could open the door for further upside, with BTC targeting higher resistance zones, including $93,257. A breakout above $93,257 would reinforce bullish momentum and signal renewed investor confidence, attracting more buyers to the market.

Breakdown Risk: Key Levels To Watch Below $85,211

Bitcoin’s inability to sustain momentum above $85,211 raises concerns about a potential breakdown, bringing key support levels into focus. With an intensified selling pressure, the next critical zone to watch is $73,919, where buyers may attempt to defend against additional losses. A breach of this level signals a deeper correction toward the $65,082 support level.

Further downside movement might bring $60,152 into play, a region that previously acted as a strong demand zone. Its failure to hold above this range may accelerate bearish movements, increasing the likelihood of BTC revisiting lower levels. Bulls need to reclaim the $73,919 mark to mitigate the risk of a prolonged decline and reestablish control over the trend.

Featured image from Unsplash, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.