TradingKey – On Monday, August 18, Ethereum (ETH) extended its decline, falling over 4% to $4,289. Since last Thursday, ETH has dropped nearly $500, marking a cumulative loss of more than 10%. Analysts warn that the recent surge in staking withdrawals could continue to pressure ETH’s price downward.
Ethereum Price Chart – Source: TradingView
According to validatorqueue and The Currency Analytics:
Over 877,000 ETH, worth approximately $3.88 billion, is currently queued for withdrawal
The queue now spans 15 days, the longest in Ethereum’s staking history
Only 280,000 ETH is queued for new staking, indicating a net outflow from the network
Juan Leon, Senior Investment Strategist at Bitwise, believes this imbalance is a key factor behind ETH’s recent pullback. He notes that when staked ETH trades at a discount to spot ETH, the pressure from queued withdrawals can intensify selling behavior.
With unstaking volume at record highs and market liquidity tightening, ETH could slide another 6% to test the $4,000 support level. This zone previously held firm during early August’s bearish wave and remains a key technical threshold.
This Friday, Federal Reserve Chair Jerome Powell will speak at the Jackson Hole Symposium, offering insights into the Fed’s policy framework and economic outlook. If Powell signals a dovish shift or hints at rate cuts, ETH could regain momentum and reverse its current downtrend.
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