Ethereum’s validator exit queue has surged toward 1 million ETH, equivalent to around $4.0 billion, amid growing staking withdrawals. This trend, driven largely by major liquid staking platforms, coincides with a price pullback as ETH struggles to maintain gains above $4,800.
Ethereum is seeing a notable uptick in staking withdrawals and validator exits, raising caution among investors. Over the past two weeks, the validator exit queue has jumped from 640,000 ETH to over 910,461 ETH, representing roughly $3.9 billion, according to data from Validator Queue.
The increase in exits is primarily fueled by the top three liquid staking platforms – Lido, EthFi, and Coinbase – as more stakers look to unlock liquidity amid the recent price rally. Following a rejection at the $4,800 level last week, Ethereum’s price has retraced over 10%, now finding support around $4,200 with daily trading volumes decreasing to $45 billion.
Ethereum Staking Dynamics and Market Implications
Currently, Ethereum’s staking system includes a 15-day waiting period for validator exits. The network has approximately 1.08 million active validators, with nearly 29.45% of the total ETH supply, or 35.3 million ETH, staked. In contrast, new staking demand remains much lower, totaling 258,951 ETH, worth about $1.09 billion.
The growing queue of unstaked ETH signals significant profit-taking, yet strong inflows into spot Ethereum ETFs and accumulation by ETH-focused treasury firms have absorbed much of the selling pressure. Analysts suggest that many investors may be temporarily unlocking liquidity with plans to re-enter the market via staking ETFs, rather than fully exiting ETH positions.
BlackRock recently filed a proposal to integrate staking into its iShares Ethereum Trust (ETHA), while the SEC’s final approval, originally scheduled for April 2026, could potentially arrive as soon as October, according to Bloomberg ETF analyst Seyffart.
Market data shows net flows into Ethereum ETFs have turned negative over the past two trading sessions. On Monday, August 18, total outflows reached $196.6 million, with BlackRock’s ETHA accounting for $87 million and Fidelity’s FETH contributing $78 million, according to Farside Investors.
