Ethereum Faces $4B Unstaking Wave as Price Risks Grow

The Ethereum price has recorded a sharp fall of almost 2.65%, dropping from a two-day high of $4,576 to $4,460 in just a few hours. What is causing the ETH price to fall suddenly?

Why is Ethereum Price Falling?

The potential reason Ethereum price is falling is the recent data shared by the on-chain transaction tracker Lookonchain. Recently, the firm shared a post on X revealing that over 893,599 ETH, worth approximately $3.96 billion, is in a queue for unstaking.

In the crypto landscape, it is considered a bullish outlook whenever an asset is moved into staking. This is because investors intend to hold the asset for the long term while earning staking rewards, showing confidence in its long-term potential.

Whereas unstaking suggests that investors may anticipate a price correction or prepare for a potential sell-off.

The Lookonchain also shared data indicating that a crypto whale wallet address, “0x2aC9”, couldn’t wait in the queue, as it swapped 4,242.4 stETH for 4,231 ETH worth $18.74 million and directly deposited it to Kraken to sell. This notable deposit was recorded when the whale was facing a loss of $50.5k.

Looking at these activities by whale and knowing such an amount of ETH in the unstaking queue, it seems like this might be an ideal time for a potential sell-off.

Current Price and Expert Predictions

At press time, the Ethereum price stands at $4,460 and has recorded a 0.50% price change over the past 24 hours. This notable fluctuation in the asset price has triggered investors and traders to drop their interest in the asset, resulting in a 10% drop in the trading volume recorded.

This sudden drop and lack of investor interest in the asset is garnering the attention of crypto experts. Recently, a prominent crypto expert shared on-chain data on X, noting that there’s still some liquidity left in the downside. In the post, he shared that $4,350 and $4,200 are the two levels where good chunks of liquidity are sitting.

This post on X gained widespread attention and spread like wildfire as investors saw this as a bearish claim. However, experts also noted that $4,800 looks like the final level to reclaim for a new all-time high.

Ethereum (ETH) Price Action and Technical Analysis

According to the expert technical analysis, the current ETH price has faced consecutive selling pressure for the past four days after reaching $4,783. On the daily chart, ETH has consistently received support from the $4,370 level.

Based on recent price action and historical patterns, if the Ethereum price falls and closes a daily candle below the local support of $4,370, it could bring a sudden fall. In this case, the asset price may reach $4,150 or $4,000.

Despite having a bearish outlook and price action, the technical indicator Supertrend is still green and hovers below the asset price. This shows that the asset is in an uptrend, and a strong buying pressure has been witnessed.