Key Takeaways

Why is Ethereum facing potential selling pressure?

Around 2.16 million ETH (worth $8.89 billion) are scheduled to unstake, creating a potential supply shock that could overwhelm market demand and push ETH prices lower.

Will ETH hold above $4,000 amid bearish sentiment?

With exchange withdrawals at a 6-year low, ETH risks breaking below the $4,000 level unless buyer sentiment improves.

Market sentiment suggests that the world’s second-largest cryptocurrency, Ethereum [ETH], with a market capitalization of $496 billion, may be on the verge of losing its $4,000 mark.

Despite a daily gain of 2.59% and rising trading volume at $28 billion, institutional outflows reached $795.41 million in the week ending the 22nd of September 22.

This indicated a growing supply pressure that could weigh heavily on Ether’s short- and long-term value across market segments.

Massive supply set to be unlocked

Ether faces the risk of a major supply shock, with roughly 2.16 million ETH scheduled for unstaking.

This amount, valued at $8.89 billion, carries an average waiting period of 37 days before release, suggesting the supply pressure will not hit the market immediately.

The large amount of ETH investors plan to unstake warns that more tokens could hit the market than demand can absorb.

Investors have already started shifting positions. Bridged netflow data shows that over $1

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Author: Olayiwola Dolapo