Ethereum Completes Biggest Validator Slashing in Proof-of-Stake Era: Details

Key Insights:

• Ethereum (ETH) slashed 39 validators for conflicting attestations on September 10.
• Losses may exceed $52,000, with most affected linked to Ankr.
• ETH faces $4,500 resistance while price outlook shows mixed signals.

Ethereum (ETH) saw its largest validator slashing this week, when 39 validators were penalized for conflicting attestations on the Beacon Chain.

Notably, the event raises questions about operational risks and shows how errors can still cost operators under the proof-of-stake system.

39 Ethereum (ETH) Validators Slashed and What It Means

Ethereum recorded its biggest validator slashing in the proof-of-stake era on September 10.

A total of 39 validators on the Beacon Chain were penalized for publishing conflicting attestations.

This marks the largest single-day event of its kind since ETH moved to proof-of-stake.

Early reports linked the affected nodes to StakeFi, Allnodes, and SSV Network. However, further checks showed most of the operators were connected to Ankr.

Beacon Chain data shows one validator lost 0.3 Ethereum (ETH), which was about $1,300 at the time.

If that figure is applied to all validators, the combined loss may have crossed $52,000.

Ethereum developer Preston Vanloon explained that the error came from validator keys running across multiple systems.

In such cases, nodes can see different versions of the chain and submit double entries. This leads to automatic slashing under consensus rules.

Vanloon also noted that the mistake could have been linked to a migration process. Once slashed, validators are not removed right away.

They must continue working until they are exited. If they go offline during this period, extra penalties apply.

Still, large-scale slashing is not common. According to Migalabs, only 525 validators have been slashed since 2020.

The scale of this week’s event stands out and adds to a short list of similar cases.

For example, in November 2023, nearly 100 validators connected to Bitcoin Suisse lost about $200,000 for submitting incorrect data.

These events show how sensitive validator operations are and how mistakes can turn into financial losses quickly.

Ethereum’s Market Position and Institutional Role

The slashing comes at a time when Ethereum is working through a mixed market cycle.

The network remains a key player in the crypto sector and is often viewed as a foundation for applications beyond currency.

Its proof-of-stake model also appeals to investors looking for a system that uses less energy and can scale better.

Institutional interest in Ethereum (ETH) has been growing. Big firms and investment groups continue to explore their use in payments, tokenization, and smart contracts.

This makes Ethereum important beyond retail trading and places it at the center of broader blockchain development.

However, the slashing incident highlights that risks still exist. Operational errors can create doubts about reliability, especially for larger players who value stability.

As Ethereum expands, the challenge is to maintain trust while avoiding costly mistakes at the validator level.

The event may not stop adoption, but it shows that the network’s future will depend on how well it handles both growth and technical discipline.

ETH Price Outlook After $4,500 Rejection

It is worth mentioning that ETH price action shows the uncertainty around the network. Ethereum (ETH) broke above a descending triangle trendline and tested $4,500.

It failed to hold that level and pulled back. CoinGlass reported that futures liquidations reached $64 million in 24 hours, with $31.6 million in longs and $32.5 million in shorts.

If Ethereum price stays above the breakout line, it could attempt another push toward $4,500. That level has acted as a strong barrier over the past two weeks.

A move past it could signal further gains, but ETH has not been able to hold above it so far.

On the downside, Ethereum price might fall toward $3,500 if it slips under the 50-day Simple Moving Average. The support zone between $4,000 and $4,100 also plays a key role.

The Relative Strength Index is close to its middle range, while the Stochastic Oscillator is under neutral but moving upward. This points to a mild bearish trend.