Crypto Market Correction Triggers 100 ETH Sale by Ethereum Foundation
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.