Ethereum Foundation Sells Another 100 ETH Worth $420,000, ETH Price Drops
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The Ethereum Foundation seems unwilling to stop, as they sold another 100 ETH on December 17. This isn't the first time they have taken such action in the past week, raising questions about their strategy. Perhaps Ethereum co-founder Vitalik Buterin explained the reasons behind the Ethereum Foundation's continuous sale of ETH.
According to data from the renowned blockchain analytics platform Lookonchain, the Ethereum Foundation sold 100 ETH from its holdings, valued at approximately $420,470.
This transaction is just one of many the foundation has conducted this year. So far, the foundation has sold a total of 4,466 ETH, worth about $12.62 million.
Interestingly, this sale occurred one week after the foundation sold 100 ETH for 374,334 DAI in mid-December. With these frequent transactions, market observers are increasingly concerned that the ETH price may be affected.
Despite holding $970.2 million in funds, the nonprofit Ethereum Foundation continues to sell its held ETH. Most of its cryptocurrency holdings are primarily in Ethereum, which will only add selling pressure to the cryptocurrency.
Ethereum's price recently surged, breaking the $4,010 mark for the first time since March 2024. Historically, every time ETH reaches this level, it faces a significant decline.
Data shows that exchange reserves have increased by nearly 100,000 ETH, worth about $400 million, indicating potential selling pressure as ETH approaches a six-month high.
Additionally, the Relative Strength Index (RSI) is declining, indicating a bearish trend and suggesting that prices may drop. Based on the current price trend, ETH is likely to drop by 12%, potentially reaching the $3,500 level.
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