TLDR
- Ethereum price has dropped from $4,700 zone and is struggling below $4,550 resistance level
- Over 1 million ETH worth $4.96 billion is waiting to exit validator staking queues – a record high
- Validator exit time has reached 18 days and 16 hours due to massive exodus from network
- ETH has gained 72% over past three months, prompting profit-taking by validators
- Standard Chartered maintains $7,500 year-end price target despite current selling pressure
Ethereum is facing pressure from two fronts as price action weakens and a historic validator exodus creates potential selling pressure worth nearly $5 billion.
The second-largest cryptocurrency has declined from the $4,700 zone and is now trading below key technical levels. ETH currently sits under $4,550 and the 100-hourly Simple Moving Average.
A bearish trend line break occurred at $4,550 on the hourly chart. The price previously recovered from $4,320 and managed to climb above $4,400 and $4,450 resistance levels.
However, bulls failed twice to push through the $4,630 resistance zone. The 50% Fibonacci retracement level from the $4,955 high to $4,310 low continues to act as a barrier.
Record Staking Exodus Hits Network
Ethereum’s proof-of-stake network is experiencing its largest validator exodus in crypto history. Over 1 million ETH tokens are currently waiting to be withdrawn from staking.
The exit queue surpassed 1 million ETH on Thursday, representing $4.96 billion at current prices. This marks the amount set for withdrawal by network validators who verify transactions and add new blocks.
The mass exodus has extended validator exit waiting time to a record 18 days and 16 hours. Only 737,000 ETH are awaiting entry into staking with a 12-day wait time.
ETH has risen 72% over the past three months. This price appreciation may be driving validators to lock in profits by exiting their staking positions.
Marcin Kazmierczak from RedStone blockchain oracle firm says the exodus reflects healthy market dynamics. He notes that institutional capital flowing into Ethereum easily absorbs validator sales.
Ethereum Price Prediction
On the downside, initial support sits at $4,440 with major support at $4,400. A break below $4,400 could push prices toward $4,320 support.
Further declines might target the $4,250 support level. The next key support level sits at $4,150.
For upward movement, resistance appears at $4,550. The next resistance level is at $4,600, followed by major resistance at $4,630.
A clear move above $4,630 could send ETH toward $4,720 resistance. Breaking above $4,720 might open the path to $4,800 or even $4,880.
The hourly MACD is gaining momentum in bearish territory. The RSI has dropped below the 50 zone, indicating weakening bullish momentum.
Iliya Kalchev from Nexo calls Ethereum the “liquidity magnet” of the crypto market. Ether futures open interest is nearing $33 billion, showing institutional interest.
Standard Chartered reiterated that ETH remains undervalued at current levels. The bank maintains a $7,500 year-end price target.
Polymarket odds now price a 26% chance of ETH reaching $5,000 this month. The analyst suggests ETH looks primed to test the $5,000 level.
The network remains stable with over 1 million active validators. There are 35.6 million ETH staked, representing over 29.4% of total supply.
