The Ethereum staking ecosystem sees a record $3.8 billion in queued Ether withdrawals, driven by platforms like Lido, EthFi, and Coinbase. Strategic reserves and ETF holdings have surged 140% since May 1, with 877,106 ETH waiting for withdrawal and 29.5% of total supply staked.

The rise in queued unstaked ETH could indicate profit-taking, but buying strength from Ether treasury companies and ETFs is absorbing selling pressure. Collective holdings of strategic reserves and ETFs have increased 140%, consolidating Ether supply in the hands of institutional players.

ETH staking ETFs could offer a bullish narrative, with investors potentially freeing up liquidity to re-enter through these products. The SEC’s final deadline for approval is in April 2026, but Bloomberg analysts suggest approval could come as early as October 2025.

The high number of queued ETH can impact price action, with institutional flows crucial for maintaining or boosting ETH’s price. A recent correction saw Ether drop to around $4,500, with potential support at $4,200 and $4,100-$3,900 if $4,200 fails. A large liquidation cluster near $5,000-$5,200 was reported.

If Ether fails to hold at $4,200, the next support levels are between $4,100 and $3,900, key areas for potential bounce-backs. The recent correction was fueled by inflation concerns from a hot US PPI print, with Ether trading around $4,500 and facing potential resistance at $5,000.

Read more at Cointelegraph: ETH Unstaking Hits $3.2B But ETFs Could Keep Prices High