Ethereum Validator Exits Hit $3.2B as ETH Falls 5% Amid Inflation Jolt
Ethereum (ETH) had its biggest daily drop in over two weeks on Thursday, down 5% as validator exit activity surged...
Quick overview
- Ethereum (ETH) experienced its largest daily drop in over two weeks, falling 5% due to increased validator exit activity and disappointing US inflation data.
- The Ethereum validator exit queue has surged to over 727,000 ETH, indicating potential profit-taking and unwinding of leveraged positions after recent price rallies.
- The release of higher-than-expected US Producer Price Index data has intensified the sell-off in risk assets, including cryptocurrencies.
- Ethereum's price outlook remains uncertain, with key support at $4,500; a hold could lead to a rally, while a break may result in further declines.
Ethereum (ETH) had its biggest daily drop in over two weeks on Thursday, down 5% as validator exit activity surged and hotter-than-expected US inflation data spooked markets.
Open Source Ethereum Blockchain Explorer 2025 data shows the Ethereum validator exit queue has ballooned to over 727,000 ETH — worth around $3.2 billion — with a 12-day wait time for withdrawal. This happened less than 24 hours after ETH hit all-time high.
The exit queue represents coins set to leave transaction validation, potentially to be sold, redeployed in higher-yield DeFi protocols or simply stored in wallets. The current exit volume is way higher than the 277,000 ETH ($1.2 billion) queued for staking entry.
Analysts think the scale of exits might be profit-taking and unwinding of leveraged staking positions after ETH’s rally since July. Santiment data shows investors have been realizing $500M-$1B in profits daily for the past three days.
Hot Inflation Data Sells Crypto
The sell-off intensified after US July Producer Price Index (PPI) data was released. The index rose 0.9% month-on-month — way above the expected 0.2% and June’s flat reading — the biggest monthly increase since June 2022. Annual PPI was 3.3%, above estimates of 2.5%.
This inflation surprise means delayed interest rate cuts and risk assets, including crypto, are selling off.
Market highlights:
- ETH Price Drop: -5% on Thursday, biggest since Aug 1
- Futures Liquidations: $346M in 24 hours, $276M from longs
- PPI Growth: 0.9% monthly, 3.3% annual
Ethereum (ETH/USD) Price Outlook: Key Levels
ETH was rejected just above $4,700 — short of the $4,868 all-time high — as historical selling pressure kicked in. Support is at $4,500. A hold here could lead to another rally to $5,000, completing the target from the bullish pennant.On the downside, a break of $4,500 could lead to a deeper drop to $4,100. RSI and Stochastic are still overbought but trending down, so short-term correction is possible.
Meanwhile, inflows from ETH ETFs and treasury accumulation may help mitigate the downside. ETFs brought in $729M on Wednesday — the second highest daily inflow — and have added over $3B in the past 7 days. Treasuries have accumulated 2.5M ETH since June and plan to add billions more.
Ethereum is at a fork in the road: hold $4,500 and retest all-time high or give up to a broader market correction.
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