Watching $ETH over the past couple of days has been pretty painful. It’s down about 20%, now hovering just above $2,000. Last night, it hit the key round-number mark of $2,000 exactly. On the surface, it may look like nobody is dumping, but in reality a huge amount of the coin is staked. Anyone wanting to redeem has to join a queue, and only a limited amount is released each day, so people can’t simply sell.
The queue data tells the story: around 450,000 $ETH were in the queue on October 11, compared with just 5,000 or so on November 9—a drop of 85% between those dates. But a shorter queue doesn’t mean the selling pressure is gone. Those in a hurry to get out have found another route: on November 9, U.S. Ethereum funds saw $184.6 million in outflows in a single day.
Even more worrying is the leverage. In early November, there were over 630 large collateralized or leveraged transactions in a single day, making it the busiest month since April. Some people use staked $ETH as collateral to borrow money and buy more coins. When the price falls, the collateral loses value, and if they can’t top up their positions, they may be liquidated.
The queue data tells the story: around 450,000 $ETH were in the queue on October 11, compared with just 5,000 or so on November 9—a drop of 85% between those dates. But a shorter queue doesn’t mean the selling pressure is gone. Those in a hurry to get out have found another route: on November 9, U.S. Ethereum funds saw $184.6 million in outflows in a single day.
Even more worrying is the leverage. In early November, there were over 630 large collateralized or leveraged transactions in a single day, making it the busiest month since April. Some people use staked $ETH as collateral to borrow money and buy more coins. When the price falls, the collateral loses value, and if they can’t top up their positions, they may be liquidated.