Key Takeaways
- ETH encountered resistance around $2,400 and currently trades beneath $2,350 with short-term bearish momentum.
- On May 11, the Ethereum Foundation withdrew approximately 21,271 ETH valued at ~$49.66 million from Lido staking.
- This withdrawal reduced the Foundation’s holdings from nearly 70,000 ETH (approaching its internal threshold) to roughly 52,965 ETH.
- Blockchain analytics from Arkham Intelligence indicate the transaction was part of treasury management, not an outright sell-off.
- Despite the unstaking news, ETH maintained stability around $2,300, with analysts identifying $2,200–$2,400 as a critical consolidation range.
Ethereum kicked off the trading week facing downward momentum. Following an advance toward $2,382, the asset encountered selling pressure and failed to sustain levels above $2,365, subsequently declining below the $2,350 threshold and the 100-hourly Simple Moving Average. The breakdown of a supporting trend line positioned at $2,340 intensified the bearish trajectory.
Selling pressure drove the asset through the 50% Fibonacci retracement level calculated from the recent $2,265 to $2,382 rally. While buyers emerged near the $2,300 mark, ETH continues trading beneath significant near-term resistance barriers.
Should ETH maintain support above $2,300, traders will monitor resistance targets at $2,340, $2,365, and $2,380. Breaking above $2,380 could pave the way toward $2,400 and potentially extend gains to the $2,440–$2,450 region.
Conversely, failure to hold $2,300 would shift attention to the $2,265 support level. Further weakness could test $2,220 and $2,200, with $2,150 representing a more substantial support foundation.
Foundation Withdraws $50M Worth of ETH from Staking
Contributing to market discussions, the Ethereum Foundation initiated an unstaking process for approximately 21,271 ETH — valued at roughly $49.66 million — via the Lido protocol on May 11. The withdrawals occurred in multiple batches of around 811 wstETH, with each transfer representing approximately $2.3 million.
Blockchain tracking data from Arkham Intelligence revealed the Foundation’s ETH holdings decreased from approximately 70,000 ETH (nearing its self-imposed limit) to about 52,965 ETH. A corresponding amount was simultaneously transferred to the Foundation’s treasury address.
According to Arkham’s assessment, the transfers appear connected to treasury portfolio rebalancing rather than preparation for immediate market liquidation. The withdrawn assets remain subject to Lido’s unstaking queue and won’t convert to liquid ETH until the protocol’s standard withdrawal timeframe concludes.
This mirrors a comparable transaction in April, when the Foundation unstaked approximately $49 million in ETH, generating similar speculation within the community.
Market Observer Highlights Critical Price Territory
Cryptocurrency analyst Ali Charts provided perspective via X, identifying the $2,200–$2,400 range as a consolidation zone where trading carries elevated risk. According to his analysis, only a definitive close beyond this range would establish the next significant directional movement for the asset.
Despite the Foundation’s unstaking operations, Ethereum demonstrated relative price stability around $2,300. Market observers largely interpreted the activity as standard organizational treasury operations rather than a precursor to substantial selling.
The Foundation has maintained staking operations since mid-2015. Its staked position experienced considerable growth throughout this year, expanding from just over 2,000 ETH in February to nearly 70,000 ETH prior to the recent withdrawal.
ETH presently trades below $2,350, with $2,300 representing the immediate critical support level to monitor.
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