According to crypto analyst Bull Theory, the record outflow of 910,461 $ETH ($3.7 billion) from Ethereum staking, which occurred between July 16 and August 19, is the result of profit-taking and staking optimization. Many validators who locked in funds when the price of ETH was significantly lower ($1000–2000) are now realizing profits as the price approached its all-time high.
Reasons for the outflow
Profit-taking: Investors who staked ETH at lower prices are now withdrawing funds to realize profits as the price exceeded $4200.
Staking optimization: Large players are consolidating smaller nodes of 32 ETH into larger pools of 2048 ETH for easier management.
Rising yields: Some investors are switching to liquid staking or protocols like EigenLayer to maximize their returns.
Despite the large outflow, this process does not create selling pressure. The Ethereum network has a withdrawal limit mechanism (no more than 1800 validators per day), which prevents sharp fluctuations. The current withdrawal queue will be processed in 15 days.
Impact on Ethereum's price
Bull Theory asserts that this outflow will not cause a significant price drop, as over 35 million$ETH remain in staking, indicating long-term commitment from investors. As long as ETH stays above $3900, the upward trend is maintained.
Fundamental indicators also confirm the trend's resilience:
Increase in inflows to Ethereum ETFs: Over the past week, funds attracted $2.8 billion.
Accumulation of ETH by corporate treasuries: Public companies hold 4 million ETH worth $17.5 billion.
Together, these factors, along with increasing tokenization of assets and legislative support, create conditions for a supply shock that could lead to further price increases$ETH .
