Ethereum faces downward pressure with $4 billion set to be unstaked

Ethereum (ETH) price has dropped to a two-week low amid market concerns about upcoming supply pressure from unstaking and macroeconomic instability.

Pressure from unstaking

Currently, up to 910,461 $ETH , equivalent to $3.91 billion, is waiting to be unstaked. Analysts suggest that this round of withdrawals is mainly due to investors taking profits after ETH price approached an all-time high.

Another reason is the increase in Ethereum lending rates on the Aave platform, making leveraged staking trades no longer effective. This forces traders to withdraw positions and pay off debts, increasing the amount of ETH being unstaked.

Market sentiment and macro risks

Data shows that outflows from funds #ETHETF have occurred for two consecutive days, indicating a decrease in interest from institutional investors. The "de-risking" sentiment is dominating the market as investors await signals from Fed Chair Jerome Powell at the upcoming Jackson Hole conference, particularly regarding interest rate cut decisions.

Despite short-term risks, experts remain optimistic about the long term. They believe the market's ability to absorb supply is very strong, thanks to capital inflows from ETF funds and digital asset treasury. The ETH price target of $6,000 to $8,000 by the end of the year is still believed by many. #anh_ba_cong