Ethereum Price Prediction: Nearly $2 billion worth of ETH is about to exit the network, but derivatives suggest that bullish sentiment remains high.

The Ethereum (ETH) network is experiencing a mass exit of validators who are queuing up to withdraw their staked ETH. Over the past four months, the price of Ether has increased by 160%, and the sentiment among validators has also changed. The number of new validators joining has surged, yet the length of the ETH staking queue has not exceeded that of the exit queue, indicating relatively low demand.

The exit queue for Ethereum validators surges

Ether has surged over 160% from its year-to-date low of $1,385 on April 9 over the past four months. However, last week's 26% bullish trend broke the $3,700 barrier, sending a withdrawal signal to Ethereum validators.

The data from the Validator Queue shows that the amount of ETH waiting to exit the network has increased from 1,920 ETH last week to 521,252 ETH, worth $1.95 billion. A large amount of ETH is waiting to exit the network, causing the wait time on Wednesday to exceed 9 days, compared to just 0.03 days last week.

(Source: Validator Queue)

Typically, a surge in exiting the queue indicates a decline in people's interest in the network, which means that validators are trying to withdraw funds after a recent price pump. On the other hand, waiting time helps regulate the number of active validators on the network.

However, the demand for external validators waiting to join the network is constantly increasing and gradually catching up. The waiting time for validators to join is 6 days, with a transaction volume of 359,557 ETH, valued at approximately 1.33 billion dollars.

Amid the chaos, the number of active validators on Ethereum has surged significantly over the past few weeks, but it has decreased from a peak of 1,096,339 on Thursday to 1,093,671. Notably, as of the time of writing, the staking amount on the Ethereum network is 35.67 million ETH.

(Source: Validator Queue)

Optimism towards Ethereum remains high

Bitwise Chief Information Officer Matt Hougan predicts that after months of poor performance, Ethereum will see a revival and "rise."

In addition, Coinglass data shows that the open interest (OI) of ETH is $55.89 billion, close to the historical high of $57.69 billion set on Tuesday.

The increase in open contracts for Ethereum indicates a rise in capital inflow for ETH derivatives, suggesting that traders' interest has strengthened.

(Source: Coinglass)