Ethereum’s Validator Exit Queue Clears As Investors Eye $4,000

Ethereum’s validator exit queue hits near zero as staking demand surges, BitMine accumulates ETH, and investors target a $4,000 breakout.

The Ethereum network is witnessing a major change in how investors handle their digital assets. 

According to on-chain data, there has been a massive clearing of the validator exit queue. 

For context, this queue is a mechanism that controls how quickly participants can stop securing the network and withdraw their funds. 

For the first time in months, the backlog has effectively vanished. This means that almost no one is waiting to pull their assets out of the system. 

Ethereum Staking Demand Surges as Exits Dry Up

Data from Beaconcha.in reveals that the exit queue currently sits at just 32 Ether. This is a staggering 99.9% drop from the peak of 2.67 million ETH seen in mid-September. 

At that time, many validators were looking to free up their assets to sell or rebalance their portfolios. Today, the wait time to exit is roughly one minute. This suggests that selling pressure from long-term holders has almost entirely dried up. 

Ethereum’s staking exit queue has hit near-zero levels | source: X

On the other side of the ledger, the entry queue has hit its highest point since mid-November. More than 1.3 million ETH is now waiting to join the network and start earning rewards.

BitMine and the “Alchemy of 5%” Strategy

BitMine Immersion Technologies, led by Chairman Tom Lee, the former J.P. Morgan strategist, has been dominating the conversation around this shift. 

BitMine was once focused mainly on Bitcoin mining, but it has now become the world’s largest public Ethereum treasury. The company is currently chasing a goal it calls the “Alchemy of 5%.” 

It aims to own 5% of the entire circulating Ethereum supply. As of this week, BitMine holds roughly 4.1 million ETH, worth about $13 billion.

BitMine has been incredibly active in the Ethereum staking market over the last ten days. 

Since December 26, the firm has moved roughly $2.5 billion into staking contracts. This includes a massive addition of 82,560 Ether on January 3. Tom Lee recently stated that at scale, BitMine could generate over $1 million per day in staking income. 

The company is also building its own infrastructure called the Made in America Validator Network (MAVAN). This network is expected to launch in early 2026 to optimise how the firm secures its holdings.

Related Reading: Ethereum Growth in 2026 Expected to Come From Crypto Neobanks

Is $4,000 Within Reach?

The technical outlook for Ethereum is looking increasingly bright. The price held firm above $3,200 this Tuesday, showing strong buyer confidence. 

Analysts are now watching a “double bottom” formation on the three-day charts. This pattern often indicates that a long period of selling has ended. If Ethereum can break above the $3,300 resistance level, it may have a clear path to $4,000.

 Institutional belief is a major factor here. When companies like BitMine lock up billions of dollars, it creates a floor for the price.

Indicators like the Moving Average Convergence Divergence (MACD) are in bullish territory. The Relative Strength Index (RSI) is also currently at 76, which is traditionally considered overbought. However, in a strong bull market, assets can stay in this range for a long time. 

The combination of high staking rewards and low market supply is pushing investors to hold rather than trade.

Tom Lee has even said that in a “supercycle” scenario, Ethereum could eventually reach much higher targets if Bitcoin continues its own rally.

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