ETH saw a surge in exchange outflows as discounted prices attracted aggressive accumulation.
At least 19,500 validators in exit queue after Shapella upgrade
It’s been over a week since Ethereum’s much-anticipated Shapella upgrade finally took place. Despite all the anticipation, many ETH holders are concerned about the potential selling pressure that could come from validators unlocking their ETH.
Considering the huge amount of ETH locked up, how is the situation a week after the incident?
According to the analysis, validators withdrawing ETH have a 12-day waiting period for Shapella to upgrade to withdraw all staked tokens. There are 19,500 validators in the withdrawal queue and 7,800 validators in the deposit queue.
Does validator movement mean validator migration?
Most validators are withdrawing their staked ETH from an exchange to move to different staking platforms.
Data shows that approximately 80% of ETH was withdrawn from a certain exchange due to the regulatory pressure that exchanges recently received from the U.S. Securities and Exchange Commission.
The key determinant of selling pressure based on validators withdrawing their staked ETH is whether they will stake their ETH on other platforms. It is very likely that other platforms such as Lido will absorb a large portion of the validators.
ETH Demand
Of course, an assessment of the level of demand for ETH may help determine the extent of selling pressure. The latest exchange outflow data for ETH on Glassnode shows a surge in exchange outflows in the last 2-3 days.
Exchange outflows are almost twice as large as exchange inflows. This observation could indicate a large accumulation due to the latest ETH price discount.
In terms of whether whales are active, whales currently control about 32% of the current supply of ETH. So no whales have been detected moving.