A record $10 billion worth of Ethereum (ETH), exactly 2.44 million ETH, is now stuck in Ethereum’s validator exit queue, as stakers line up to withdraw their funds from the network, sparking concerns of an impending ETH price correction.
According to beaconcha.in data, validators exiting the network face an average wait time of over 42 days, which is one of the largest withdrawal backlogs since Ethereum’s transition to proof-of-stake.
In Ethereum’s consensus mechanism, validators who wish to stop staking must first enter an exit queue that releases ETH gradually to protect network stability.
Source: ValidatorqueueWill $10B in Validator Exits Crash ETH to $3,800?
However, the sheer size of the current exit queue suggests mounting profit-taking pressure as Ethereum trades around $4,500, just 9.75% below its all-time high.
Analysts warn that if a substantial portion of the $10 billion in queued ETH is eventually unstaked and moved to exchanges, the selling pressure could temporarily disrupt market stability.
While not all withdrawn ETH may be sold immediately, some could shift to liquid staking protocols or restaking services, and even a fraction entering open markets could trigger a retracement toward the $3,800–$4,000 support zone.
The move reflects growing caution among stakers as yields drop to 2.86% APR, prompting some to rotate capital into higher-yielding opportunities.
At the same time, nearly 498,000 ETH remain in the entry queue, showing that new validators are still joining despite the exits, an indication that network confidence remains intact for now.
Source: ValidatorqueueWith over 35.6 million ETH (29.36% of supply) still staked, Ethereum’s long-term fundamentals appear stable, though short-term volatility may rise if large withdrawals hit exchanges in the coming weeks.
The last time Ethereum experienced notable validator congestion, around September 25, when 833,141 ETH sat trapped in a 14-day exit queue, ETH briefly dropped to $3,876 before recovering above $4,400 in the weeks that followed.
Historically, validator supply shortages following mass exits have often set the stage for renewed bullish momentum, as reduced liquid supply tends to strengthen recovery rallies once selling pressure fades.
Can Institutional Demand Absorb $10B in Validator Selling Pressure?
Institutional demand for Ethereum is now surging, offsetting some of the bearish sentiment from validator withdrawals.
According to data from StrategicETHReserve, corporate treasuries now hold approximately 5.66 million ETH (4.68% of the supply), while spot Ethereum ETFs collectively own around 6.81 million ETH (5.63%), bringing the total institutional holdings to over 12.47 million ETH.
October alone saw $621.4 million in net inflows into U.S.-listed spot Ether ETFs, more than doubling September’s $285.7 million, according to SoSoValue.
August’s inflows peaked at $3.9 billion, underscoring sustained appetite for Ethereum exposure among institutional investors.
Crypto hedge fund XWIN Finance predicts Ethereum could realistically reach $10,000 this cycle, citing robust macro liquidity conditions and dwindling exchange reserves as drivers of a potential “revaluation phase,” similar to Bitcoin’s post-liquidity surge rallies.
Likewise, BitMEX co-founder Arthur Hayes reiterated in a July blog post that $10,000 Ethereum by the end of 2025 remains achievable, linking the forecast to expanding U.S. money supply and what he described as a “wartime economy” under President Donald Trump’s policies.
Technical Analysis: ETH Eyes $4,770 Breakout
Looking at the Ethereum 1-hour chart on Binance, the price is comfortably above the EMA 50 at $4,492.92, suggesting bullish momentum in the short term.
The chart shows a clear recovery pattern after a dip around October 5th, where ETH touched the low $4,400s. Since then, the price has formed higher lows and is now testing the $4,600 resistance zone.
Source: TradingViewThe candlestick patterns indicate sustained buying pressure, particularly visible in the strong green candles that pushed the price from around $4,500 to current levels.
Volume patterns show increased participation during the recent rally, though the most recent bars indicate some cooling off, which is typical during consolidation phases.
Based on these indicators, the immediate price direction appears bullish with $4,770 as the next realistic target, representing roughly a 4% move from current levels. If that level breaks with strong volume, the path opens toward the $4,956 resistance zone.
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