Ethereum Under Siege: Foundation Unstakes Millions, Whales Dump Billions as Price Struggles Below $2,400

Ethereum Foundation Unstakes 21,271 ETH from Lido

On May 11, 2026, the Ethereum Foundation unstaked approximately 21,271 ETH — worth roughly $49.6 million at current prices — from Lido Finance. This action represents about 30% of the Foundation’s recent staking position. While unstaking does not automatically mean selling, the timing has raised questions across the community.

Whale Distribution Accelerates

Wallets holding between 1,000–10,000 ETH have reduced positions by over 21.5% since October 2025, shedding roughly 3.4 million ETH. Additional large transfers include a $396 million ETH deposit to Binance and multiple Paradigm-linked wallets moving funds to exchanges. Exchange reserves are rising while the Exchange Supply Ratio increases, pointing to heightened sell-side pressure.

Tokenized Treasuries Hit Record $8 Billion on Ethereum

Despite price weakness, tokenized U.S. Treasuries deployed on Ethereum have reached an all-time high market capitalization of $8 billion. This milestone highlights Ethereum’s growing role as the premier settlement layer for institutional real-world assets and on-chain yield products.

Technical Outlook: Bearish Signals Dominate

ETH continues to trade below $2,400 after repeated rejection. Key observations include:

Market Quagmire: Institutions vs Whales

While spot Ethereum ETFs have recorded outflows and the Coinbase Premium remains negative, institutional infrastructure development on Ethereum continues. BlackRock’s BUIDL and other tokenized funds demonstrate long-term confidence in the network despite short-term selling pressure.