Ethereum Foundation Sells 100 ETH for $420K, Price Set to Drop

Ethereum Foundation Sells 100 ETH

According to data from blockchain analytics platform Lookonchain, the Ethereum Foundation sold 100 ETH for approximately $420,470 on December 17, 2024. This is just one of many sales the Foundation has made this year. In total, the Foundation has offloaded 4,466 ETH, valued at around $12.62 million, as part of its ongoing asset management strategy.

While the Foundation’s treasury still holds a significant amount of assets, estimated at $970.2 million, much of its holdings are in Ethereum, which has added selling pressure to the cryptocurrency’s market price. The most recent sale came just a week after another transaction where the Foundation sold 100 ETH for 374,334 DAI, continuing its trend of frequent asset offloads.

Vitalik Buterin’s Explanation Behind the Sell-Off

Ethereum co-founder Vitalik Buterin has addressed the rationale behind the Ethereum Foundation’s continuous ETH sales. According to Buterin, the Foundation sells ETH periodically to fund public projects and ensure it maintains adequate reserves. Despite holding a substantial treasury, which includes a large amount of ETH, the Foundation has maintained this strategy to support Ethereum’s long-term development.

While some critics have raised concerns over the Foundation’s constant selling, with accusations that Buterin might be profiting personally, the Ethereum co-founder has firmly denied these claims. He maintains that the Foundation’s ETH sales are in line with its mission to fund Ethereum’s growth and initiatives, with no personal financial gain involved.

ETH Price Loses Momentum

Ethereum recently reached a significant price milestone, crossing the $4,010 mark for the first time since March 2024. However, each time ETH has approached this level in the past, it has experienced a notable price drop. The recent sell-offs by the Ethereum Foundation, along with the rise in exchange reserves, are contributing to growing concerns about Ethereum’s price trajectory.

Data shows that exchange reserves have increased by nearly 100,000 ETH, worth around $400 million. This surge in reserves signals potential selling pressure as Ethereum nears a six-month high. Additionally, the Relative Strength Index (RSI) for ETH is showing signs of a bearish trend, suggesting that a price drop could be imminent. Given the current market conditions, there’s a strong possibility that ETH could see a 12% decline, potentially reaching the $3,500 level.

Conclusion: Market Impact and Future Outlook

While the Ethereum Foundation’s ongoing sell-offs continue to raise concerns, Vitalik Buterin’s explanation suggests that the sales are part of a broader strategy to fund development and ensure the Foundation’s financial health. However, the market is closely monitoring ETH’s price action, especially as the token faces potential selling pressure and signs of a bearish trend. Investors should remain cautious and watch for any further developments regarding the Foundation’s asset management and ETH’s price movements in the coming weeks.