• Grayscale has stored over 300,000 ETH worth $1.3 billion, but the price of Ethereum has fallen below $4,500 despite the positive achievement of the ETF.

  • Over 2.4 million ETH are queued for unstaking, indicating increased selling pressure and growing network imbalance.

  • Dormant whales transferring tens of thousands of ETH to exchanges add further pressure, diminishing the positive impact of Grayscale.

Grayscale's announcement that the Grayscale Ethereum Trust ETF has become the first cryptocurrency ETF listed in the United States that allows custody helped push the price of ETH to over $4,700 in October.

However, Grayscale's staking activities $ETH were not strong enough to keep prices above this level for long.

Grayscale has frozen over 300,000 ETH, but selling pressure is greater.

On October 6, Grayscale said that the Ethereum Trust ETFs (ETHE, ETH) and Solana Trust (GSOL) now allow investors to earn custody yields directly through traditional brokerage accounts.

Industry leaders expressed optimism about the news, describing it as a bullish signal for ETH and the broader Ethereum ecosystem.

Joseph Shalom, co-founder of SharpLink (SBET), said, "It's great news that Grayscale's ETH ETFs can now custody $ETH. This is a significant achievement for the ecosystem and bullish for Ethereum overall. After working on Bitcoin and Ethereum ETFs from BlackRock, I saw how powerful these tools are for institutional access and adoption."

However, the price of $ETH fell below $4,500, which is lower than it was at the announcement of the news.

ETH price performance since the beginning of October. Source: TradingView

According to on-chain analytics firm EmberCN, since the approval of custody, Grayscale has acquired 304,000 ETH, worth over $1.3 billion.

This move shows Grayscale's strong commitment to supporting the Ethereum network. Reducing the circulating supply can also help stabilize the price of ETH.

However, current data from the Ethereum network indicates that this effort may not be enough to create a strong positive impact.

The amount of ETH in staking and unstaking. Source: ValidatorQueue

Data from ValidatorQueue shows that around 489,000 $ETH are waiting to be staked, most of which belong to Grayscale. In contrast, the amount of ETH waiting to be unstaked is much higher and has increased since early October, with over 2.4 million ETH queued for withdrawal.

This large gap indicates potential selling pressure, which could increase the circulating supply of ETH and put downward pressure on prices.

Long-sleeping whales in the Ethereum network are waking up, adding more selling pressure.

At the same time, many old Ethereum whales have begun to move and sell their holdings.

  • According to Lookonchain, a whale wallet woke up after four years of inactivity and sold 1,800 ETH for a profit of about $8.12 million. Four years ago, the wallet withdrew 5,999 ETH from Kraken at a price of $2,523 per ETH.

  • Similarly, SpotOnChain reported another dormant whale that transferred 15,000 ETH (worth nearly $68.2 million) to Bitfinex after five years of inactivity.

A similar pattern appears among OG Bitcoin holders, reflecting an overall sentiment of profit-taking among long-term and large-scale investors.

The combination of reactivated Ethereum whales and an increase in the unstaking list in October may weaken the positive impact of Grayscale's staking efforts.

While staking more ETH helps bolster network security and generate staking rewards, selling pressure from unstaking activity and whale movements may outweigh these benefits — making it difficult for the price of ETH to maintain its upward momentum.

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