Grayscale’s ETH Staking Push Meets Resistance as Whale Selling and Unstaking Queue Pressure Prices

Ethereum’s rally above $4,700 in early October was fueled by Grayscale’s landmark move to enable staking within its U.S.-listed Ethereum ETFs — a first for spot crypto exchange-traded products. Yet, despite the bullish momentum, the price surge proved short-lived.

On October 6, Grayscale confirmed that its Ethereum Trust ETFs (ETHE, ETH) and Solana Trust (GSOL) now allow investors to earn staking rewards directly through traditional brokerage accounts. The move was widely hailed as a breakthrough for institutional adoption, signaling that mainstream investors could now participate in crypto staking without leaving the regulated financial system.

“This is a major milestone for the ecosystem and bullish for Ethereum overall,” said Joseph Chalom, co-founder of SharpLink (SBET). “Having worked on Bitcoin and Ethereum ETFs before, I’ve seen firsthand how powerful these vehicles are for institutional access.”

However, the excitement was short-lived. Within days of the announcement, ETH’s price slid back below $4,500 — even as Grayscale staked over 304,000 ETH, worth roughly $1.3 billion. While this effort reduced Ethereum’s circulating supply, on-chain data revealed a growing imbalance: more than 2.4 million ETH are now queued for withdrawal, suggesting mounting selling pressure.

That pressure is being amplified by renewed activity from long-dormant Ethereum whales, many of whom have begun moving and selling large holdings. Similar sell-offs among early Bitcoin investors point to a broader trend of profit-taking among veteran crypto holders.

Together, the unstaking surge and whale-driven liquidations have offset the bullish implications of Grayscale’s staking program. Although staking bolsters network security and yields, the current market dynamics — driven by liquidity exits and profit realization — have made it difficult for ETH to sustain its upward momentum.

Grayscale’s staking initiative underscores Ethereum’s growing integration into traditional finance, but as October unfolds, the battle between staking demand and selling pressure continues to define ETH’s volatile price path.