Ethereum is under renewed pressure after a sharp rally, with analysts warning that a wave of unstaked coins could test support levels later this month.
Ethereum surged from $3,698 at the start of August to $4,788 last Thursday, its highest price in four years. The rally, however, quickly lost steam. By Monday morning, ETH had fallen to $4,260 — a 10% drop after nearly 30% gains in just two weeks.
Analysts point to unstaking activity as a major factor behind the reversal.
Unstaking Queue Extends to 40 Days
On-chain data provider Rated reported that on August 9, Ethereum’s validator exit queue grew so congested that processing times jumped to 25 days. By August 18, the backlog had swelled further, pushing waiting times to 40 days.
Normally, unstaking takes only two to three days. But the surge in requests shows that many validators are trying to exit and cash in while prices remain elevated.
Influencer @notgrubles highlighted that the ETH exit queue doubled in just four days, totaling $3.7 billion worth of coins. In comparison, staking new ETH still takes under five days.
Analysts Weigh Potential Impact
Unstaking requests that began in early August could start releasing coins by August 25, raising fears of additional selling pressure. If buyers fail to absorb the inflows, ETH could face further declines.
Still, some market watchers see room for optimism. Influencer @0xCryptoSam noted that the market has endured similar conditions before, pointing to late July when a large backlog was followed by a 20% rally over the next two weeks.
For now, Ethereum traders are watching closely to see whether fresh supply will trigger a deeper correction or if demand will stabilize prices.
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Source: https://coindoo.com/ethereum-pullback-deepens-analysts-warn-of-selling-pressure-by-month-end/