TLDR
- Ethereum price falls to two-week low of $4,150, down 4.5% from Tuesday’s high of $4,350
- $4 billion worth of staked Ethereum (910,461 ETH) is queued for withdrawal over next 15 days
- Ethereum ETFs see consecutive outflows as investors de-risk ahead of Federal Reserve’s Jackson Hole meeting
- Network activity declines 28% with active addresses dropping from 841,000 to 600,000 since July
- Technical analysis shows potential for further decline to $4,020 support level
Ethereum price has plunged to a two-week low of $4,150, marking a sharp 4.5% decline from Tuesday’s peak of $4,350. The world’s second-largest cryptocurrency faces mounting pressure as massive staking withdrawals loom.
The ETH price drop coincides with Bitcoin’s correction to $112,000. Both cryptocurrencies are experiencing selling pressure ahead of critical market events.
Record-Breaking Validator Exit Queue
Ethereum’s Proof-of-Stake network currently shows 910,461 ETH queued for withdrawal. This massive exit represents $3.91 billion worth of staked tokens awaiting unstaking over the next 15 days.
The validator exit queue has reached record levels as stakers rush to lock in profits. With Ethereum trading near its 2021 all-time high of $4,900, many participants are choosing to cash out.
Xu Han from HashKey Capital confirmed that profit-taking drives the unprecedented exit queue. Rising borrowing rates on Aave have also made leveraged staking strategies less attractive.
These higher costs force traders to unwind positions and repay loans by unstaking their Ethereum holdings. The selling pressure continues to mount.
New staking demand tells a different story. Only 258,951 ETH worth $1.09 billion is queued for staking, well below the exit demand.
Network Activity Crashes
Ethereum network metrics reveal troubling trends. Active addresses have dropped 28% from 841,000 to 600,000 since July 30.
Network Growth, tracking new addresses joining Ethereum, fell 28% to 138,000 in the same period. These declines signal weakening adoption and user engagement.
ETF Outflows Resume
Ethereum ETFs recorded consecutive outflows after two weeks of strong inflows. The timing aligns with investor de-risking ahead of Friday’s Federal Reserve Jackson Hole meeting.
Fed Chairman Jerome Powell’s comments on September rate cuts could impact crypto markets. Traders anticipate potentially hawkish remarks from the central bank chief.
Ethereum Price Prediction
ETH price now trades below the $4,250 level and 100-hourly Simple Moving Average. A bearish trend line forms resistance at $4,350.
Key resistance levels sit at $4,185 and $4,320. Failure to reclaim these levels could push Ethereum toward $4,020 support.
Technical indicators including hourly MACD and RSI display bearish momentum. The next major support level sits at $4,000.
Despite short-term headwinds, some analysts remain optimistic about Ethereum’s long-term prospects. Institutional ETF inflows and digital asset treasuries may absorb the supply shock.
The current supply unlock represents the largest validator exodus in Ethereum history as the crypto market faces multiple headwinds.
