Key Takeaways
- Ethereum’s price encountered resistance near $2,400 and currently trades below $2,350 with bearish momentum building.
- On May 11, the Ethereum Foundation withdrew approximately 21,271 ETH valued at ~$49.66 million from Lido’s staking protocol.
- This withdrawal reduced the Foundation’s ETH holdings from nearly 70,000 ETH (approaching their internal threshold) to approximately 52,965 ETH.
- Blockchain analysis from Arkham Intelligence indicates the transaction appears to be treasury management rather than preparation for selling.
- Despite the unstaking news, ETH maintained stability around $2,300, with market observer Ali Charts identifying $2,200–$2,400 as a critical decision zone.
Ethereum kicked off the week facing downward momentum. Following an advance toward $2,382, ETH couldn’t sustain levels above $2,365 and descended below the $2,350 threshold along with the 100-hourly Simple Moving Average. A supporting trend line at $2,340 was also breached, amplifying the bearish momentum.
Sellers drove the price beneath the 50% Fibonacci retracement level calculated from the $2,265 to $2,382 rally. While buyers emerged near the $2,300 mark, ETH continues trading beneath critical near-term resistance barriers.
Should ETH maintain support above $2,300, traders should monitor resistance at $2,340, $2,365, and $2,380. Breaking above $2,380 could pave the way toward $2,400 and possibly the $2,440–$2,450 range.
Conversely, a decisive move below $2,300 would shift attention to $2,265 as the next support target. Further weakness could test $2,220 and $2,200, with $2,150 representing a more substantial support foundation.
Foundation Withdraws $50M Worth of Staked ETH
Compounding market uncertainty, the Ethereum Foundation initiated an unstaking process for roughly 21,271 ETH — approximately $49.66 million in value — via the Lido liquid staking platform on May 11. The withdrawals occurred in multiple batches of about 811 wstETH, with each transaction valued around $2.3 million.
Blockchain tracking from Arkham Intelligence revealed the Foundation’s ETH holdings decreased from nearly 70,000 ETH (close to their self-imposed limit) to roughly 52,965 ETH. A corresponding amount was transferred into the Foundation’s main treasury address.
Arkham’s assessment suggests the transfers represent strategic treasury rebalancing rather than imminent liquidation. The withdrawn assets remain locked within Lido’s unstaking queue and won’t convert to liquid ETH until the mandatory withdrawal period concludes.
This action mirrors a comparable transaction from April, when the Foundation similarly unstaked approximately $49 million worth of ETH, triggering comparable market speculation.
Market Analyst Identifies Critical Price Territory
Cryptocurrency analyst Ali Charts provided commentary on X, highlighting the $2,200–$2,400 range as a zone where traders should exercise caution. He emphasized that only a definitive close beyond this band would establish the next significant directional movement for the asset.
Despite the Foundation’s unstaking operations, Ethereum maintained relative stability around $2,300. Market observers largely interpreted the activity as standard treasury operations rather than an indicator of impending selling pressure.
The Foundation has maintained staked ETH positions since mid-2015. Its staking portfolio expanded significantly throughout the current year, climbing from just over 2,000 ETH in February to nearly 70,000 ETH prior to this recent withdrawal.
ETH currently trades below $2,350, with $2,300 representing the crucial near-term support level to monitor.
