Ethereum (ETH) Struggles at $2,400 After Foundation Withdraws $50M from Staking

Key Highlights

• ETH encountered resistance around $2,400 and currently trades beneath $2,350 with short-term bearish momentum.
• On May 11, the Ethereum Foundation withdrew approximately 21,271 ETH valued at ~$49.66 million via Lido staking protocol.
• This withdrawal reduced the Foundation’s holdings from nearly 70,000 ETH (close to its internal threshold) to approximately 52,965 ETH.
• Blockchain analytics from Arkham Intelligence indicate the transaction was part of treasury management rather than preparation for immediate liquidation.
• Despite the unstaking news, ETH maintained stability around $2,300, with market observers identifying $2,200–$2,400 as a critical indecision zone.

Ethereum kicked off the trading week with downward momentum. Following an advance toward $2,382, ETH couldn’t sustain levels above $2,365 and declined beneath both $2,350 and its 100-hour Simple Moving Average. The breakdown of a bullish trend line positioned at $2,340 intensified the selling pressure.

Sellers drove the asset through the 50% Fibonacci retracement level spanning the rally from $2,265 to $2,382. While buyers emerged around the $2,300 mark, ETH continues trading below crucial short-term resistance thresholds.

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 possibly the $2,440–$2,450 region.

Conversely, losing the $2,300 support level would shift attention to $2,265. Further deterioration could expose $2,220 and $2,200 as subsequent support areas, with $2,150 representing a more significant support level.

Foundation Withdraws $50M Worth of ETH from Staking

Contributing to market discussions, the Ethereum Foundation initiated an unstaking process for roughly 21,271 ETH — valued at approximately $49.66 million — through Lido on May 11. The withdrawals occurred in multiple batches of about 811 wstETH, with each transfer worth close to $2.3 million.

Blockchain tracking data from Arkham Intelligence revealed the Foundation’s ETH holdings decreased from near its 70,000 ETH internal limit to roughly 52,965 ETH. Simultaneously, a comparable quantity was transferred to the Foundation’s treasury address.

Arkham suggested these transfers represented treasury rebalancing activities rather than preparations for market liquidation. The withdrawn assets remain in Lido’s withdrawal queue and won’t convert to liquid ETH until the standard unstaking period completes.

This mirrors a comparable transaction from April, when the Foundation unstaked approximately $49 million in ETH, which generated similar market speculation.

Market Observer Highlights Critical Price Territory

Cryptocurrency analyst Ali Charts published his perspective on X, identifying the $2,200–$2,400 range as a no-trade territory for ETH. He emphasized that only a definitive close beyond this range would establish the next significant directional move.

Regardless of the Foundation’s unstaking operations, Ethereum maintained relative stability in the $2,300 vicinity. Market observers interpreted the transaction as standard treasury operations rather than an indicator of impending sell pressure.

The Foundation has maintained staking operations since mid-2015. Its staking position experienced substantial growth throughout this year, climbing from slightly above 2,000 ETH in February to approximately 70,000 ETH prior to this recent withdrawal.

ETH presently trades beneath $2,350, with $2,300 representing the next critical support threshold to defend.

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