Ethereum is facing its biggest validator exodus on record, with more than 1 million ETH, worth nearly $5 billion, lined up for withdrawal. The backlog has now stretched the exit queue to almost 19 days. This has become a cause for concern about whether a flood of selling could weigh on prices.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
A Massive Queue Builds
Ethereum’s proof-of-stake network has never seen an exit line this big. Validators, who secure the blockchain and confirm transactions, are stepping away in droves. As of Thursday, more than 1 million ETH sat in the queue, according to validatorqueue data.
Not every validator pulling out will sell, but the timing is hard to ignore. Ethereum is up more than 70% in just three months, and some stakers may simply be locking in those gains. If even a slice of the $5 billion starts hitting exchanges, it could add noticeable pressure.
Why Some See Less Risk
Not everyone is worried. Some analysts argue the exits say more about normal market rotation than panic. Marcin Kazmierczak, co-founder of RedStone, told Reuters the queue “reflects healthy market dynamics.” In his view, the real story is that institutional demand—from ETFs to treasuries—is more than strong enough to soak up the selling.
The numbers back this up. Ethereum futures open interest is nearing $33 billion, a sign that big investors remain heavily engaged. Standard Chartered recently kept its $7,500 year-end target in place, calling ETH undervalued even after the rally.
Ethereum Still Looks like the Magnet
Even as validators cash out, ETH continues to act as crypto’s “liquidity magnet.” Traders point to steady inflows, big bets in the derivatives market, and rising odds on prediction markets. Polymarket now gives ETH a 26% chance of hitting $5,000 in September.
That optimism meets reality this week, with new U.S. economic data, including jobless claims and the Fed’s preferred inflation gauge, set to steer risk sentiment. If macro winds stay supportive, ETH could test $5,000 sooner than skeptics think.
At the time of writing, Ethereum is sitting at $4,601.11.
