The Ethereum Foundation unstaked 21,271 ETH, worth approximately $49.66 million, on May 11 in a move described as a routine treasury rebalancing to fund ongoing development and grants.
On-chain data from Arkham Intelligence confirmed the transaction, which saw the ETH converted from wstETH via Lido’s unstaking contract and moved to the Foundation's main treasury wallet.
The withdrawal reduces the Foundation's staked position to 52,965 ETH, down from a self-imposed ceiling of 70,000 ETH reached in April. This is the second major liquidity event in weeks, following a 17,035 ETH unstaking worth $40 million in April. The ETH price was approximately $2,331 at the time of the transaction and remained stable in the hours following.
While the unstaking represents a fraction of Ethereum's circulating supply, the rapid reversal after reaching its staking goal has drawn scrutiny from the crypto community. The Foundation's stated policy is to periodically convert assets to cover operational costs, but traders will be watching for any movement of the nearly $50 million in liquid ETH toward exchange addresses, which could introduce short-term sell pressure.
The transaction was executed as the Foundation neared a self-imposed cap of 70,000 staked ETH. The move brings its total staked holdings down by roughly 30 percent.
This action is consistent with the Foundation’s treasury management policy, which aims to provide operational liquidity for protocol development and ecosystem grants. No exchange deposit addresses have been flagged as destinations for the unstaked ETH.
Market reaction was muted, reflecting confidence in the Foundation's routine financial posture. The move is seen by some analysts as marginal in the context of broader market drivers. Fundstrat’s Tom Lee, for instance, has a long-term price target of $22,000 for ETH, a scenario where periodic treasury sales by the Foundation would have minimal impact.
The crypto community has responded with some skepticism, questioning the timing of the unstaking so soon after the 70,000 ETH goal was met. The ETH/BTC pair has shown weakness recently, and large movements from institutional wallets are being watched closely.
This article is for informational purposes only and does not constitute investment advice.