ETH's biggest source of mechanical sell pressure is about to vanish

Just crossed with another great Leon Tweet talking about validator entry queues and something interesting happened.

https://preview.redd.it/bwlya9wgmcbg1.png?748&format=png&auto=webp&s=56f2718f3438a0ae9d87cd70a5b578a2214032a7

As you can see in the chart above, the validator entry queue is larger than the exit queue for the first time in six months. More ETH is lining up to enter validator duty than to leave it and this actually matter, it is not just a cute stat.

Right now the entry queue ius sitting around ~745k ETH while the exit queue has dropped to roughly ~360k ETH. In other terms, confidence is creeping back in, quietly but steadily.

This shift is interesting for a few things:

• The validator exit queue is not at a four month low. Historically, exits are one of the clearest signals for predictable sell pressure because unstaked ETH often heads straight to the market. That pressure has been hanging over ETH since around July, acting like a constant gravity force on price.
• Over that period about 5% of the entire ETH supply, around $15k worth, has changed hands. That is not retail panic selling, that is serious redistribution and big chunk of that ETH did not disappear, it got absorbed. One of the biggest absorbers has been BitMNR, which now holds close to 3.4% of all ETH and they are sitting on around $1B in dry powder with a public intention to keep buying.

At the current reate, the exit queue is on track to hit near zero around January 3. When that happens a major source of mechanical sell pressure will vanish.

No fireworks, no headlines, just fundamentals quietly lining up.

ETH does not need hype right now, it is building. 2026 is looking kinda spicy!

Source:

• Tweet: https://x.com/LeonWaidmann/status/2007772769405088226