Key Highlights
- Over 17,000 ETH valued at roughly $49 million was unstaked by the Ethereum Foundation last Saturday
- The withdrawal utilized Lido’s unstETH contract, with funds converting to liquid ETH following the withdrawal queue
- This action occurred as the Foundation neared its 70,000 ETH staking milestone
- Foundation officials have not provided any public explanation, fueling market concerns about potential sales
- A recent 10,000 ETH over-the-counter transaction with Bitmine Immersion Technologies preceded this withdrawal
Blockchain analytics from Arkham Intelligence reveal that the Ethereum Foundation withdrew 17,035 ETH—valued at roughly $49 million—during the weekend. The operation involved transferring wrapped staked ETH (wstETH) through Lido’s unstETH contract in multiple transactions, each containing approximately 811 wstETH.
Following the standard Lido withdrawal process, these holdings will revert to liquid ETH. To date, the Foundation has remained silent on the rationale behind this significant move.
The withdrawal’s timing has caught the attention of market observers. The Foundation executed this unstaking operation precisely as it approached its self-imposed milestone of 70,000 staked ETH. Prior to the withdrawal, approximately 69,500 Ethereum tokens were staked, leaving the Foundation tantalizingly close to its objective.
The Foundation’s aggressive staking campaign commenced in February 2026. Beginning with an initial stake of 2,016 ETH, the organization expanded its position with 22,517 ETH in March, followed by an additional 45,000 ETH deployment earlier this month.
This staking strategy was formally approved in June 2025. The Foundation’s stated objective centered on generating staking rewards to support protocol development, research initiatives, and ecosystem grant programs.
Market Concerns Over Potential Liquidation
The recent unstaking activity has reignited anxiety within the community regarding possible selling pressure. Several observers have pointed to the Foundation’s recent pattern of over-the-counter transactions, notably the disposal of 10,000 ETH to Bitmine Immersion Technologies.
“The biggest seller of ETH continues to be the people who created ETH,” one user posted online.
Market analysts are closely monitoring the $2,300–$2,400 price zone for ETH, which technical observers identify as a critical support-resistance area that could determine short-term price trajectory.
Ethereum co-founder Vitalik Buterin has historically cautioned that extensive Foundation staking activity might introduce governance challenges, particularly during divisive hard fork scenarios.
Wider DeFi Ecosystem Grapples with Security Breach
In parallel developments, the Ethereum decentralized finance sector continues addressing consequences from a devastating $293 million security breach affecting the Kelp restaking protocol. Attackers compromised more than 116,000 restaked ETH tokens, subsequently leveraging them as collateral for borrowing operations that resulted in approximately $195 million in uncollateralized debt on Aave.
An emergency response group known as “DeFi United,” spearheaded by Aave, has committed over 43,500 ETH (approximately $101 million) toward stabilizing rsETH. Contributing organizations include Lido DAO, Golem Foundation, EtherFi Foundation, and Mantle.
The Ethereum Foundation’s latest verified blockchain activity remains the $49 million unstaking transaction executed on Saturday, April 26, 2026.
