Ethereum is facing strong selling pressure as the amount of unstaked ETH nears 1 million coins.
The increasing withdrawal of validators threatens the development of Ethereum, as capital inflows into the market exert downward pressure on prices and weaken the chance of surpassing Bitcoin.
MAIN CONTENT
The amount of unstaked ETH is close to 1 million, equivalent to nearly 4 billion USD, putting pressure on the price.
ETH faces strong outflows from exchanges and selling pressure from ETFs, while BTC maintains stability.
Ethereum ETF could soon surpass Bitcoin in terms of holdings if the current trend continues.
What does Ethereum unstaking nearing 1 million ETH signal?
The amount of unstaked ETH has reached nearly 910,000 coins, equivalent to about 3.9 billion USD, creating downward pressure on prices and reducing Ethereum's chances of surpassing Bitcoin.
Samson Mow, CEO of JAN3 and Bitcoin advocate, warns that this trend may continue and hinder Ethereum's strength. Currently, Ethereum has about 29% of its supply staked, but new demand is decreasing, and more validators are leaving. Millions of ETH in the exit queue along with weakened Ether prices are notable signs of market volatility.
Mr. Mow once commented: “The change will not happen but unstaking is on the way.” This contradicts positive forecasts from market experts like Tom Lee.
How is ETH facing selling pressure?
In the last 2 days, the Ethereum ETF has recorded an outflow of approximately 257 million USD, causing the price of ETH to drop from its weekly peak to around 4,300 USD.
The Director of Canary Capital shares a bearish view, suggesting that Ethereum lags behind newer blockchains like Solana or Sui. He predicts that ETH will struggle to reach new highs while Bitcoin could rise to 140,000–150,000 USD thanks to ETF demand and institutional investors.
Ethereum currently no longer maintains its leading position in speed and efficiency, which limits its long-term growth potential.
Director of Canary Capital, 2024
Why is the inflow of ETH into exchanges increasing sharply while BTC remains stable?
On-chain data shows that Bitcoin maintains a stable level of cash flow into exchanges, reflecting stable market sentiment and little selling pressure.
Meanwhile, Ethereum recorded a peak of 2.6 million ETH transferred to exchanges in one day in mid-August, indicating strong trading activity and a higher likelihood of holders taking profits. This difference clarifies the larger volatility on Ethereum, warning of a higher risk of price decline.
Will the Ethereum ETF surpass the Bitcoin ETF in the near future?
According to Dragonfly experts, the Bitcoin ETF currently accounts for 6.38% of the total BTC supply, while the Ethereum ETF accounts for 5.08% of the ETH supply.
If the trend of the Ethereum ETF continues to rise, the ETF market share of Ethereum is expected to surpass Bitcoin in September, opening up the possibility of fierce competition between the two largest cryptocurrencies.
The coming months will be an important test of whether Ethereum can maintain its position or if Bitcoin will maintain a long-term advantage.
Frequently Asked Questions
What does the near 1 million ETH unstaking mean for investors?
Large unstaking signals increased selling pressure and may negatively impact the price of ETH, caution is needed when trading.
Is the selling pressure of ETH due to ETF?
The Ethereum ETF is currently experiencing strong outflows, contributing to selling pressure and pushing prices down recently.
Why does BTC maintain stability in cash flow on exchanges?
Stable inflow into BTC exchanges indicates a relatively strong market sentiment, with little occurrence of sudden sell-offs or major volatility.
Will the Ethereum ETF actually surpass the Bitcoin ETF?
The rapidly increasing trend of ETH ETF may help it surpass BTC in the coming months, but this depends on the overall market developments.
Does Bitcoin have the potential to rise sharply this year?
Many experts predict that Bitcoin could rise to the level of 140,000–150,000 USD thanks to ETF demand and institutional capital.
Source: https://tintucbitcoin.com/ethereum-mat-1-trieu-staking-tri-hoan/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
