Large exits often come hand in hand with market stress. When institutions unwind positions, confidence can drop quickly. This sentiment shift affects trading behavior, as speculators and arbitrage traders adjust their positions. With billions of dollars in ETH stuck in exit queues, price swings have become sharper.
Ethereum price has reflected this instability. Over the past two months, the asset climbed 91 percent, reaching a new record high of around $4,946. However, this rise was followed by a sharp 6 percent pullback as investors booked profits and short positions increased. Some traders are betting on the price falling back toward $4,000, while long-term bulls remain confident, building positions in futures markets.
Interestingly, since the Merge, Ethereum has generally become less volatile than before. Liquidity has improved, trading spreads have narrowed, and overall efficiency has grown. Still, the current exit queue shows that sudden structural issues can quickly disturb even a more mature market.