Key Highlights
- Ethereum encountered resistance near $2,400 and currently trades below $2,350 with bearish momentum building on shorter timeframes.
- The Ethereum Foundation withdrew approximately 21,271 ETH valued at ~$49.66 million through Lido on May 11.
- This withdrawal reduced the Foundation’s ETH holdings from approximately 70,000 ETH near its internal threshold down to roughly 52,965 ETH.
- Blockchain tracking data from Arkham Intelligence indicates the transaction represents treasury management operations rather than preparation for immediate selling.
- ETH maintained stability around $2,300 following the announcement, while analyst Ali Charts identified $2,200–$2,400 as a neutral zone requiring caution.
Ethereum began the trading week facing downward momentum. Following an advance toward $2,382, ETH encountered selling pressure above $2,365 and declined beneath the $2,350 threshold along with the 100-hourly Simple Moving Average. A bullish trend line positioned at $2,340 was breached, amplifying the downward movement.
Selling pressure drove the price through the 50% Fibonacci retracement level measured from the $2,265 low to the $2,382 high. Demand materialized around $2,300, though ETH continues trading beneath important near-term resistance zones.
Should ETH maintain support above $2,300, traders will monitor resistance levels at $2,340, $2,365, and $2,380. A breakthrough above $2,380 could establish a path toward $2,400 and possibly the $2,440–$2,450 range.
Regarding downside scenarios, a decline below $2,300 would shift attention to the $2,265 level. Further weakness could test $2,220 and $2,200 as subsequent support areas, with $2,150 representing a more substantial base.
Ethereum Foundation Withdraws $50M in ETH
Contributing to market discussion, the Ethereum Foundation initiated unstaking procedures for approximately 21,271 ETH — representing roughly $49.66 million — through the Lido staking platform on May 11. The withdrawals occurred in multiple batches of around 811 wstETH each, with individual transfers valued near $2.3 million.
Blockchain intelligence from Arkham Intelligence revealed the Foundation’s ETH balance decreased from levels approaching its internal maximum of 70,000 ETH to approximately 52,965 ETH. A corresponding amount was simultaneously transferred into the Foundation’s treasury wallet.
Arkham assessed the transfers as part of treasury rebalancing activities rather than preparation for market liquidation. The withdrawn funds remain subject to Lido’s unstaking queue and will require the standard withdrawal period before becoming available as liquid ETH.
This transaction mirrors a comparable action from April, when the Foundation unstaked approximately $49 million in ETH, generating similar market discussion during that period.
Analyst Identifies Critical Price Range
Crypto analyst Ali Charts published analysis on X, highlighting the $2,200–$2,400 range as a no-trade zone for ETH. He emphasized that only a confirmed close beyond this range would establish the next significant directional move for the cryptocurrency.
Despite the Foundation’s unstaking operations, Ethereum maintained relative stability near $2,300. Market observers generally interpreted the transaction as standard treasury operations rather than an indicator of impending selling activity.
The Foundation has maintained staking activities since mid-2015. Its staking position expanded substantially during the current year, climbing from slightly above 2,000 ETH in February to nearly 70,000 ETH prior to the recent withdrawal.
ETH currently trades below $2,350, with $2,300 representing the next critical support level requiring defense.
