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- The Ethereum Foundation sales of ETH have historically coincided with significant market corrections, with the recent transaction causing ETH’s price to drop 8%.
- It aligns with the Foundation’s strategy of reinvesting in the blockchain’s long-term growth rather than holding ETH for speculative gains.
The Ethereum Foundation has sold 100 ETH worth approximately $336,000, Lookonchain reported on Wednesday. This is part of its selling pattern that began in January 2024 when it offloaded a total of 4,566 ETH, worth $12.96 million.
Ethereum Foundation Continues ETH Sale
Market analysts have attributed the Foundation’s sales to price corrections. According to Lookonchain, such sell-offs have coincided with deep market dips in the past. For instance, after the sale of 100 ETH in December 2024, the price of Ethereum dropped by approximately 17%.
The recent sale caused a sharp 0.6% drop in the value of ETH within 10 minutes, and the crypto dropped 8% thereafter. At the time of writing, ETH price dropped 1.71% to $3,305.56 on Thursday, January 9. This hints at a sustained downtrend owing to continued ETH selloff by large holders. According to reports, the Ethereum Foundation has made 32 ETH transactions over the last year, which includes 15 near-market peaks.
Moreover, Yumi Sumiko, a contributor to Medium, shared the underlying reasoning for the sales. As Sumiko observed, the foundation cares about operational and development sustainability over profits. “The foundation doesn’t just sit on its funds and watch them grow,” she noted.
“Instead, it actively chooses to invest in Ethereum’s ecosystem, betting on the fact that this blockchain will be around for the long haul,” Sumiko explained. It reportedly even supports active ongoing research and projects under the Ethereum network.
ETH Price Analysis: More Pain Ahead?
Ethereum price’s recent action fits into bearish technical patterns. TradingView analysts pointed out a breakdown from a rising trendline near resistance levels, suggesting a possible retreat toward support around $3,061. Further selling pressure supports this outlook.
WaveTraders analysts said that ETH could be in the corrective phase of a larger bearish pattern. They believe the recent upward trend could reverse into a more profound decline, reflecting broader market corrections.
Ethereum’s stagnation above the $3,000 threshold in recent months has contributed to cautious investor sentiment. Funding rates, which gauge market activity in derivatives, highlight the shift. When ETH approached $4,000, aggressive buying pushed funding rates higher, per the CNF report.
However, subsequent liquidations and consolidations led to funding rates dropping to 0.052% from 0.093% in 24 hours. Whilst, total liquidations reached $86.38 million. Long positions accounted for $44.78 million of the losses.
Also, the derivatives market showed further signs of a downtrend as open interest dropped 3.13% to $29.58 billion. In addition, the long-to-short ratio dropped to 0.8968, which means there is a bearish tilt among traders.
Furthermore, U.S. spot Ethereum ETFs also suffered significant outflows on the last day. Daily net outflows surged to $159.4 million on Wednesday, January 8, with Fidelity alone seeing liquidations of $147.7 million. Grayscale Ethereum Trust lost $8.3 million as bearish sentiment took control of the market. This could further worsen the current bearish trend around the ETH price, even pushing it below the $3,000 threshold.
