Ethereum Faces $3.9B Unstaking Amid Bullish Signals

Ethereum faces $3.9B unstaking but strong institutional demand and ETF inflows suggest markets can absorb selling without major shocks.

Validator exits hit record highs in August showing a shift in staking behavior yet ETH price outlook remains resilient and bullish.

Analysts see Ethereum repeating past bull cycles with $4.5K as only the beginning and long-term potential stretching beyond $10K.

Ethereum is approaching a crucial moment as $3.9 billion worth of ETH is set to be unstaked within two weeks. This event has sparked debate among traders, who worry about potential selling pressure. However, analysts argue the market can easily absorb the impact

Max Crypto explained that institutional buyers and ETFs already purchased 1.6 million ETH in August, worth $7.5 billion. Hence, even if half of the unstaked ETH gets sold, the pressure equals only four days of buying activity. Consequently, ETH price stability remains likely despite growing exit volumes.

Source: Max Crypto

Validator Trends Show Market Transition

The validator chart shows significant shifts in Ethereum's network dynamics in addition to the staking flows. Validator admissions and exits stayed low, primarily below 100,000, from late 2024 to early 2025.

October, November, and January had little rises, but they soon dropped back to baseline. However, entries jumped over 200,000 validators and crested close to 500,000 by May, marking a significant change from the March 2025 pattern. During this time, participation increased strongly, and exits remained low.

June was also a watershed month, with both entries and exits increasing. Exits exceeded 400,000 validators by the middle of July, almost tying new entrants. On August 17, entrances fell to almost 300,000, while exits hit a record 893,599 validators. As a result, the network changed from growing steadily to experiencing high exit pressure, which reflected shifting staking patterns.

Price Outlook Remains Strong

Moreover, Ethereum’s price action mirrors past cycles. Analyst Ted compared 2024–2025 with Ethereum’s 2016–2017 bull run. In both periods, the market displayed “bear traps” where prices briefly collapsed before recovering. During 2017, ETH dropped below $20 before soaring to new highs. Similarly, in 2025, ETH fell under $3,000 before bouncing back near $4,500.

Source: Max Crypto

Ted emphasized, “$ETH at $4.5K isn’t the end but just the beginning.” He noted that Bitcoin, now valued at $2.5 trillion, has already doubled its 2021 peak. Consequently, the same institutional flows and catalysts lifting BTC are also driving Ethereum. Besides, with stronger ETF demand, ETH’s long-term path remains upward.

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