Ethereum Foundation Unstakes 17,035 ETH Near Milestone

The Ethereum Foundation has begun unstaking more than 17,000 ETH, valued at approximately $40 million, just as its total staked holdings approached a long-targeted milestone of 70,000 ETH. The move, detected on Saturday through on-chain data, involved transferring wrapped staked ETH, known as wstETH, into Lido Finance's unstETH withdrawal contract, initiating a process to release the underlying ETH after a standard queue period on the Ethereum Beacon Chain.

Unstaking allows validators to withdraw ETH previously locked to secure the network and earn rewards, but it requires entering a withdrawal queue before funds become liquid. According to blockchain analytics firm Arkham, the foundation executed the transaction across 271 batched operations, depositing a total equivalent to 17,035 ETH. This structured approach minimized network congestion and maintained traceability, suggesting a deliberate treasury management step rather than an impulsive action. Once the queue clears, the ETH will return to the foundation's control, though no timeline has been specified.

The foundation has not commented on the rationale behind the unstaking, leading to community speculation about potential...