Key Highlights
- Ethereum’s price encountered resistance near $2,400 and now trades 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 self-imposed limit) to around 52,965 ETH.
- Blockchain analytics from Arkham Intelligence indicate this activity represents treasury management rather than preparation for immediate liquidation.
- Despite the withdrawal news, ETH maintained stability around $2,300, while technical analysts identify $2,200–$2,400 as a critical range to avoid trading within.
Ethereum kicked off the week under pressure. Following an advance toward $2,382, the digital asset couldn’t sustain momentum above $2,365 and declined beneath both the $2,350 mark and its 100-hour Simple Moving Average. A supporting trend line positioned at $2,340 was breached, amplifying downward momentum.
Sellers drove the asset through the 50% Fibonacci retracement level calculated from the $2,265 low to the $2,382 peak. Demand materialized near $2,300, though ETH continues trading below critical near-term resistance zones.
Should ETH maintain its position above $2,300, traders should monitor resistance at $2,340, $2,365, and $2,380. Breaking through $2,380 would clear the path toward $2,400 and possibly the $2,440–$2,450 territory.
Regarding downside risks, slipping below $2,300 would bring $2,265 into play as the next target. Further weakness could test $2,220 and $2,200 as subsequent support areas, with $2,150 representing a more substantial floor.
Foundation Withdraws $50M Worth of ETH
Contributing to market discussion, the Ethereum Foundation initiated an unstaking process for approximately 21,271 ETH—representing roughly $49.66 million in value—through Lido’s staking service on May 11. The withdrawals occurred in multiple batches of about 811 wstETH each, with individual transactions valued at approximately $2.3 million.
Blockchain tracking by Arkham Intelligence revealed the Foundation’s ETH holdings decreased from nearly 70,000 ETH (approaching its internal threshold) to approximately 52,965 ETH. A corresponding amount was simultaneously transferred into the Foundation’s primary treasury address.
Arkham’s analysis suggests these transfers represent standard treasury rebalancing operations rather than positioning for immediate market sales. The withdrawn assets remain subject to Lido’s unstaking queue and won’t convert to liquid ETH until the protocol’s mandatory withdrawal timeframe concludes.
This action mirrors a comparable transaction from April, when the Foundation unstaked approximately $49 million worth of ETH, triggering similar community speculation at that time.
Technical Analyst Identifies Critical Range
Cryptocurrency analyst Ali Charts provided commentary on X, designating the $2,200–$2,400 corridor as a zone traders should avoid. He emphasized that only a definitive close beyond this range would signal the next significant directional move for the cryptocurrency.
Notwithstanding the Foundation’s unstaking operations, Ethereum demonstrated relative stability around $2,300. Market observers generally interpreted the activity as standard operational treasury management rather than indicating imminent selling pressure.
The Foundation has maintained ETH staking operations since mid-2015. Its staked holdings expanded significantly throughout this year, climbing from slightly above 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 next crucial level to defend.
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