A tug-of-war is intensifying in the Ethereum ecosystem as a record amount of Ether is queued for unstaking, while institutional demand simultaneously reaches new heights. The outcome of this dynamic could set the stage for Ethereum’s next major price move.
Currently, an unprecedented 877,106 Ether (ETH), valued at approximately $3.88 billion, is waiting to be withdrawn from staking contracts, facing a 15-day wait time. This surge in unstaking is led by top liquid staking platforms, with Lido accounting for 285,000 ETH, followed by EthFi with 134,000 ETH and Coinbase with 113,000 ETH, according to DeFi analyst Ignas.
This activity comes as Ethereum’s staking ecosystem flourishes, with over 1.08 million active validators now securing the network. Data from ValidatorQueue shows that nearly 30% of the total ETH supply—around 35.3 million ETH—is currently staked, highlighting its foundational role in the network’s security and operation.
A Wall of Institutional Money Absorbs Selling Pressure
While a record withdrawal queue might typically signal a looming market sell-off from profit-takers, a powerful counter-narrative is unfolding. The analyst Ignas suggests that fierce accumulation from Ether treasury companies and the newly launched spot ETH exchange-traded funds (ETFs) is absorbing much of the potential selling pressure.
Data from strategicethreserve.xyz confirms this trend, revealing that the collective holdings of strategic reserves and ETFs have skyrocketed by 140% since May 1. These holdings have climbed from 4.14 million ETH to over 10 million ETH, underscoring a rapid consolidation of Ether into the hands of major institutional and corporate players.
This institutional demand suggests that for every seller looking to exit, a large-scale buyer is ready to enter, creating a more stable foundation for ETH’s price.
The Staking ETF Factor: A Strategic Reshuffle?
Another bullish theory points toward the future launch of ETH staking ETFs. Ignas speculates that some investors may be unstaking their ETH now simply to free up liquidity. Their goal isn’t to exit the market but to re-enter through these regulated ETF products once they become available, allowing them to gain staking rewards within a traditional financial framework.
While the SEC’s final deadline for approving such products is April 2026, Bloomberg ETF analyst James Seyffart believes the green light could come much sooner, potentially as early as October 2025.
How Will This Impact Ether’s Price? The Battle for $4,200
The high number of queued ETH is a double-edged sword for its price. If robust institutional inflows continue, ETH could absorb the supply and prepare for another leg higher. However, if this demand wanes, the backlog of unstaked ETH could weigh heavily on the market.
Following a recent correction triggered by a hot U.S. Producer Price Index (PPI) print that stoked inflation fears, Ether’s price is navigating a critical juncture. The immediate support zone lies between $4,370 and $4,160.
However, the most crucial level to watch is $4,200. According to the crypto intelligence platform Kiyotaka, over $1.2 billion in long positions are at risk of liquidation if the price tags this level. This concentration of liquidations makes $4,200 a magnetic point and a potential battleground between bulls and bears.
If Ether fails to hold the 4,100 and $3,900**. This area aligns with the 0.5–0.618 Fibonacci retracement range—often called the “golden zone” for retesting an uptrend—and a previous higher high, reinforcing its strength as a potential floor. Conversely, holding support could give bulls the momentum needed to challenge the $5,000 resistance level once again.
