Key Takeaways
Why is Ethereum facing potential selling pressure?
Around 2.16 million ETH (worth $8.89 billion) are scheduled to unstake, creating a potential supply shock that could overwhelm market demand and push ETH prices lower.
Will ETH hold above $4,000 amid bearish sentiment?
With exchange withdrawals at a 6-year low, ETH risks breaking below the $4,000 level unless buyer sentiment improves.
Market sentiment suggests that the world’s second-largest cryptocurrency, Ethereum [ETH], with a market capitalization of $496 billion, may be on the verge of losing its $4,000 mark.
Despite a daily gain of 2.59% and rising trading volume at $28 billion, institutional outflows reached $795.41 million in the week ending the 22nd of September 22.
This indicated a growing supply pressure that could weigh heavily on Ether’s short- and long-term value across market segments.
Massive supply set to be unlocked
Ether faces the risk of a major supply shock, with roughly 2.16 million ETH scheduled for unstaking.
This amount, valued at $8.89 billion, carries an average waiting period of 37 days before release, suggesting the supply pressure will not hit the market immediately.
Source: CryptoPlate
The large amount of ETH investors plan to unstake warns that more tokens could hit the market than demand can absorb.
Investors have already started shifting positions. Bridged netflow data shows that over $13 million worth of ETH left exchanges in the past 24 hours—the largest amount bridged from any blockchain during that timeframe.
Selling pressure is gradually building
Exchange withdrawal transactions have fallen to their lowest level since 2018, according to CryptoQuant.
Roughly 37,000 transactions were recorded in the past day, reflecting weaker investor optimism and pointing to a potential demand squeeze.
Source: CryptoQuant
Interestingly, this drop in activity did not match exchange reserves, which stayed relatively flat. A flat reserve suggests that spot investors remain undecided about holding long term or selling for profit.
However, with more ETH held in reserve, the risk of a sudden sell-off remains elevated, and the market could face significant pressure.
A shift in sentiment will likely determine whether Ether can sustain a rally or continue to struggle.
Liquidation map suggest a trade lower
The liquidation map on CoinGlass shows concentrated leverage across both long and short positions.
On the long side, the largest liquidity cluster sat at the $4,147 level, with $49.5 million at risk.
Source: CoinGlass
Meanwhile, the short side holds far heavier leverage, with the $3,906 level alone carrying $618.96 million in liquidity.
This imbalance suggests that downside pressure is more likely, raising the probability that Ether could lose its grip on the $4,000 level.