EIGEN in the Hot Seat: $1.6M Token Unlock Threatens Support Levels
EIGEN's market stability hangs by a thread as a $1.6 million token unlock looms—will buyers step up or let it slide?
Token Unlock Tension: The clock's ticking for EIGEN holders as a major liquidity event approaches. Market makers are sweating bullets over whether demand can absorb the incoming supply shock.
Support Under Siege: All eyes on the order books to see if key price levels hold—or if we'll witness yet another 'buy the rumor, sell the news' crypto classic. Because nothing says decentralized finance like watching whales play pinata with retail portfolios.
Eigen token unlock to pressure support
According to data from Token Unlocks, roughly 1.3 million EIGEN tokens, valued at around $1.86 million, will be released into the market on July 29. While not massive compared to the token’s $2.3 billion fully diluted valuation, the unlock arrives at a time when the price is already leaning on key support NEAR the $1.25–$1.30 range.
The release may increase short-term supply pressure and test the strength of existing holders. As open interest and volume decline, traders might become more cautious in the run-up to the unlock.
Updates expand EigenCloud’s reach
The unlock follows two major protocol updates. EigenCloud deployed its long-awaited Redistribution mechanism to the mainnet on July 22. This allowed funds from slashed Actively Validated Services to be repurposed rather than being destroyed. This adds more flexibility to AVS design, especially for teams building with unique economic models.
Subsequently, on July 24, the protocol revealed Multi-Chain Verification, initially launching on Base. This enables AVSs to retain Ethereum-level security while verifying state across LAYER 2 networks. EigenCloud’s wider role in Ethereum’s (ETH) shared security landscape is evolving, based on this major upgrade.
Eigen technical analysis
On the daily chart, EIGEN is caught between $1.25 and $1.49, with the Bollinger Bands narrowing, reflecting reduced volatility. Neutral sentiment is shown by a number of important indicators. While momentum is slightly negative and the MACD recently turned bearish by crossing below its signal line, the RSI is currently at 49.9, close to equilibrium.
Williams %R and the stochastic RSI both hover in oversold territory, but not at extremes, indicating uncertainty rather than a definite reversal. Moving averages are divided.
While longer-term 30-, 50-, and 100-day averages continue to support a mildly bullish structure, short-term EMAs and SMAs (10- and 20-day) indicate selling pressure. This shows broader market uncertainty.
The next support is located near $1.10 if $1.25 breaks. On the upside, a sustained MOVE past $1.50 could open room toward $1.75. For now, traders appear to be waiting for the unlock to pass before committing in either direction.
