Ethereum Foundation Hints Another Big ETH Dump In $49M Setup
Highlights
- Ethereum Foundation completed unstaking $48.9 million in Ethereum this weekend.
- The move led to selloff fears as the organization has engaged over-the-counter sales lately.
- Analysts say that the ETH price is retesting the $2,300-2,400 level, which could decide its future trajectory.
The Ethereum Foundation is once again in the spotlight with fresh on-chain activity, which sparked speculations of selling ETH. The concerns come after the organization conducted a batch of massive unstaking moves totalling almost $49 million worth of Ethereum.
Ethereum Foundation Unstakes $49 Million In ETH
Arkham Intelligence has highlighted data on several transfers of wrapped staked ETH (wstETH) to the Lido unstETH contract. These transactions were made in groups of approximately 811 wstETH (about $2.3 million). Further, experts believe they are likely to be a part of a coordinated plan.
Once the withdrawal queue on Lido’s crypto staking platform is processed, the assets will be converted back to liquid ETH for Ethereum Foundation. These funds will only be available after the usual unlocking period. The announcement immediately led to speculation about a potential market sell-down, particularly in the absence of any official statement.
Ethereum Foundation first began staking ETH in mid-2015, as a means to earn yield for ecosystem development. Moreover, its staking has ramped up rapidly since February, from just over 2,000 ETH to almost 70,000 ETH.
However, the new withdrawal for over 17,000 ETH comes just before achieving the 70,000 ETH goal again. Recently, Ethereum Foundation sold 10,000 ETH over-the-counter to Bitmine Immersion Technologies Inc. (NYSE:BMNR).
What’s Happening With ETH Price?
The ETH price still exhibits a weak action amid the Ethereum Foundation unstaking activity. Ted Pillows suggests that Ethereum is currently in a consolidation stage with significant levels to break out. “ETH is going sideways for now,” he noted.
Further, the chart shared by Pillows shows a recent breakdown after which a recovery attempt ensued. The ETH price analysis shows that it fell sharply below $2,600 and found support at the $2,100-2,200 area (marked in green). Ether price has now bounced toward the $2,300-$2,400 zone, which serves as a key resistance zone.
Thus, Pillows provided two scenarios for the short term. He said: “If Ethereum manages to reclaim the $2,400 level, it’ll tap the $2,470–$2,500 liquidity.” That area coincides with previous resistance as shown on the chart. On the down side, he added, “If it loses the $2,300 zone, a retest of $2,150–$2,200 support level will happen quickly.”
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