Bitwise Analyst: The Growing Queue of ETH Withdrawals May Lead to Significant Market Selling Pressure
According to ChainCatcher, market sources report that the Ethereum blockchain’s validator exit queue reached 855,158 ETH on Friday, setting a new all-time high. Bitwise Senior Investment Strategist Juan Leon stated that the continuously increasing amount of ETH pending withdrawal may be a factor driving the recent pullback in the asset. The queue of unstaked Ethereum typically exerts downward pressure on ETH prices and could lead to significant market sell-off pressure going forward.
This is because staking tokens like stETH can trade at a discount, and such discounts reduce the value of collateral, which can trigger risk reduction, hedging, or even liquidation, ultimately resulting in spot ETH sell-offs. Leveraged “stETH loop” trades conducted through DeFi protocol liquidity pools will no longer be profitable, and traders closing positions and selling ETH to repay loans will also create synchronized selling pressure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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