Selling again raises market concerns about future pressure.
The news of the Ethereum Foundation selling Ethereum again is drawing market attention. According to the latest data provided by the on-chain tracking information platform Spot on Chain, the foundation sold 100 ETH on December 10 and exchanged it for approximately 374,334 $DAI. Based on recent market prices, the foundation has sold a total of 4,366 ETH since the beginning of 2024, with a total value of about 12.21 million USD, and an average selling price of about 2,796 USD per coin.
The Ethereum Foundation has sold 100 ETH again.
This reduction in holdings comes just about a month after the last sale, coinciding with price volatility in Ethereum, inevitably causing unease and speculation in the market. After all, the Ethereum Foundation holds a vast inventory of Ethereum, and if further selling occurs during subsequent price surges, it could create pressure on Ethereum's market price. According to previous reports, the foundation's treasury is valued at about 970 million USD, most of which consists of its Ethereum holdings. This large stockpile hangs over the market like a sword, making investors more cautious about future trends.
Price under pressure, downward risk increasing.
Affected by the news, the price of Ethereum dropped about 3% during the day, with a 24-hour low of about 3,525 USD and a high of 3,944 USD. This weakness reflects the impact of selling pressure on market psychology. Although Ethereum has shown decent gains over the past week and even the past month (about 17% and 4%, respectively), some analysts point out that the technicals are currently signaling caution, anticipating that Ethereum's price may face correction risks.
Investors are also adopting a wait-and-see attitude towards the future of Ethereum, worried that the foundation's renewed selling might just be a prelude, and larger-scale selling pressure may still be ahead. Technical analysis shows that after a price surge, the volume and momentum have weakened, and given the market's sensitivity to the foundation's fund movements, a stage-wise correction cannot be ruled out.
The crypto market is cautious, and the foundation's actions are key.
As the industry says, the actions of large holders often have a significant impact on the market. The Ethereum Foundation, as an important driver behind the Ethereum ecosystem, inevitably becomes the focus of investors' close attention regarding its fund management strategies. If the organization continues to sell during a market uptrend, it could challenge market confidence and cast a shadow over future price trends.
However, some market observers believe that the Ethereum Foundation, possessing substantial assets, may regularly liquidate funds for ecological development and research expenditures, which is a normal fund management behavior. Behind the upward trend, the organization's fund deployment strategy is often quite pragmatic.
In the coming weeks and possibly longer, the market will closely monitor whether the foundation continues to sell Ethereum. If the foundation frequently reduces its holdings, it will inevitably put pressure on Ethereum's price. Investors should pay attention to technical and fundamental signals, cautiously assess risks, and determine the future price direction.
[Disclaimer] The market carries risks; investment requires caution. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.
This article is authorized for reprint from: Crypto City.
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