Ether (ETH) has declined more than 7% from its 2025 high of $3,844, dipping below $3,550 on Wednesday amid a sharp rise in validator exits. The number of validators looking to unstake ETH has hit its highest level in 18 months, according to staking platform Everstake.
Ethereum, which operates on a proof-of-stake model, requires validators to lock up their ETH to help secure the network. Those who wish to exit must join a validator exit queue, which has surged significantly in recent days.
As of Wednesday, over 644,000 ETH, worth approximately $2.34 billion, is waiting to be unstaked, with an estimated 11-day delay for processing, according to data from ValidatorQueue. A similar surge occurred in January 2024, when ETH experienced a 15% price drop.
While the trend could signal profit-taking, Everstake emphasized that it does not indicate fear or a mass exodus from the network.
“This is a shift, not a collapse,” the firm stated, noting that many validators appear to be repositioning, either to restake, optimize returns, or rotate between operators.
The current exit queue has sparked speculation that some stakers may be preparing to sell, creating short-term sell pressure. Still, there are signs of balance.
Roughly 390,000 ETH, worth around $1.2 billion, is also in the entry queue for staking, meaning the net unstaked amount is closer to 255,000 ETH. The entry queue has grown steadily since early June, boosted by aggressive ETH accumulation from firms like SharpLink and Bitmine.
Additionally, Ethereum’s network metrics remain strong, with the number of active validators nearing 1.1 million and total staked ETH reaching 35.7 million, roughly 30% of the total supply, valued at over $130 billion.
Institutional Demand Remains Strong
Despite the selloff, investor interest remains high. U.S. spot Ethereum ETFs have attracted more than $2.5 billion in inflows over just six trading days, even in the absence of a staking-based ETF.
“We’ve seen $8 billion in net inflows into Ethereum through DeFi bridges over the past three months. This shows growing interest from both institutional investors and on-chain participants.”
Henrik Andersson, Chief Investment Officer at Apollo Capital.
Further pressure came from a move by Tron founder Justin Sun, who recently withdrew $600 million worth of ETH from the DeFi lending platform Aave. The withdrawal led to a temporary depeg of Lido’s stETH token, a popular liquid staking derivative, and a steep drop in Aave’s ETH liquidity.
