Key Highlights
- Ethereum’s price encountered strong resistance near the $2,400 mark and is now consolidating beneath $2,350 with bearish momentum building.
- On May 11, the Ethereum Foundation withdrew approximately 21,271 ETH valued at roughly $49.66 million via the Lido protocol.
- This withdrawal reduced the Foundation’s holdings from approximately 70,000 ETH (near its internal threshold) down to around 52,965 ETH.
- Blockchain intelligence from Arkham Intelligence indicates this activity represents treasury management rather than preparation for immediate liquidation.
- Despite the withdrawal news, ETH maintained stability around $2,300, with market analysts identifying the $2,200–$2,400 corridor as a critical decision zone.
Ethereum kicked off the trading week under pressure. Following an attempt to break above $2,382, the asset couldn’t sustain momentum beyond $2,365 and retreated beneath the $2,350 threshold along with the 100-hourly Simple Moving Average. A supporting trend line positioned at $2,340 also gave way, amplifying downward momentum.
Sellers drove the asset below the 50% Fibonacci retracement level measured from the $2,265 low to the $2,382 high. While buyers emerged around 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 trigger a rally toward $2,400 and potentially the $2,440–$2,450 zone.
Conversely, failure to hold $2,300 would shift attention to $2,265 as the next support level. Further breakdown targets include $2,220 and $2,200, with $2,150 serving as a more substantial support foundation.
Foundation Withdraws $50M Worth of ETH from Staking
Amplifying market attention, the Ethereum Foundation initiated an unstaking process for approximately 21,271 ETH — valued at around $49.66 million — through Lido on May 11. The withdrawals occurred in multiple transactions of roughly 811 wstETH each, with individual transfers valued near $2.3 million.
Blockchain tracking data from Arkham Intelligence revealed the Foundation’s ETH holdings declined from nearly 70,000 ETH (approaching its self-imposed ceiling) to approximately 52,965 ETH. A corresponding amount was simultaneously transferred to the Foundation’s treasury address.
Arkham analysts suggested these movements reflect standard treasury rebalancing operations rather than signals of imminent selling. The withdrawn assets remain subject to Lido’s unstaking queue and won’t convert to liquid ETH until the mandatory withdrawal timeframe concludes.
This mirrors a comparable action from April, when the Foundation unstaked approximately $49 million in ETH, generating similar market speculation at that time.
Technical Analyst Identifies Critical Trading Range
Prominent crypto analyst Ali Charts shared insights 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 range would clarify Ethereum’s next significant directional move.
Notwithstanding the Foundation’s unstaking operations, Ethereum maintained relative stability around the $2,300 level. Market observers largely interpreted the transaction as standard treasury operations rather than a precursor to selling activity.
The Foundation has maintained staking operations since mid-2015. Its staked holdings experienced substantial growth this year, climbing from just above 2,000 ETH in February to nearly 70,000 ETH prior to the recent withdrawal.
ETH currently trades beneath $2,350, with $2,300 representing the critical support level that needs to hold for bulls to maintain control.
