The market is at a crossroads: HODL or exit before the dynamic reverses?
Less than a week into 2026, large caps have already recouped December losses. Macroeconomic volatility has clearly pushed for a risk-focused week. However, it also raises questions about how sustainable this decision actually is.
For Ethereum (ETH), however, the market seems to be anticipating continued bullishness. Supporting this, the ETH validator exit queue has fallen to 15,000, a 99.5% drop from the peak of 2.6 million seen in mid-September.
Source: ValidatorQueue
Simply put, Ethereum validators did not flinch during the market FUD.
Although ETH was down about 30% in Q4 from Q3’s high of $4.2k and ended 2025 7% weaker than Bitcoin (BTC), Ethereum validators avoided panic exits. Instead, they maintained their positions, a sign of conviction.
Additionally, during the same period, Ethereum’s staking APR increased from 3%+ to 2.54%, showing a notable decline in validator rewards. Yet the queue at the exit continued to shrink, strengthening stakeholder engagement.
Overall, the data indicates strong HODLing sentiment.
Historically, similar trends have marked the start of major ETH bull runs. For example, in Q1 2024, a pattern resembling the recent decline in exit queues triggered a 60% increase in the quarter.
The question now is whether history might be preparing to repeat itself.
Validators remain stable as Ethereum activity soars
Ethereum validators are holding up, and that’s no coincidence.
The real question is: what do they include that makes them hold on so tightly? Looking at the on-chain fundamentals of Ethereum, signals suggest that the market could be gearing up for something big.
As the chart shows, stablecoin transfers on Ethereum surpassed $8 trillion in the fourth quarter, hitting a new all-time high. Add to that over 2 million daily transactions, also an ATH, and it’s clear that liquidity is being leveraged across the entire network.
Source: Token Terminal
In short, Ethereum validators rely on strong network engagement.
According to AMBCrypto, this marks a key divergence: participants have maintained their position via market FUD while network activity has remained strong, showing that they are playing the long-term game rather than reacting to short-term fluctuations.
In this context, with historical patterns aligning, short liquidity increasing, and staking building, all of this points to a solid foundation for ETH. This setup makes a breakthrough in price discovery increasingly likely by the end of the quarter.
Final Thoughts
- Ethereum’s validator exit queue fell to 15,000, the staking APR fell to 2.54%, but validators remained put, signaling long-term conviction.
- Stablecoin transfers peaked in the fourth quarter and daily transactions reached 2 million, showing liquidity on the move and a solid foundation for a possible ETH breakout.
