Ethereum (ETH) price faced a sharp decline, dropping to $3,308 as the Ethereum Foundation sold 100 ETH on Wednesday.
The sell-off continues a trend that began in June 2022, with the foundation offloading 4,566 tokens valued at $13 million to date.
Rising exchange balances and surging bond yields add further pressure to Ethereum’s outlook.
Ethereum Prices Sensitive to Ongoing Foundation Sales
Ethereum on exchanges amounts have been rising, that indicates that investors are interested in selling pressure.
According to on-chain data, exchange balances have climbed since bottoming in November 2024.
The trend largely confirms market worries at larger levels, with excessive selling typically associated with ever decreasing faith in price sustainability.
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Usually, surging exchange balances coincide with price declines, fueling a bull run momentum in the crypto market.
The foundation’s ongoing sales has made combined with it and the sentiment remains fragile. They are warning that such news could further suppress Ethereum’s recovery from recent lows.
As a recent case, the sale of 100 ETH by the Ethereum Foundation shows insider activity that external investors keep a negative view about.
Though the foundation still owns over $900 million worth of ETH, that gives some comfort to its long term commitment. However, continued sales increase in market uncertainty for volatile conditions.
A lot of attention is paid to such an insider movement — a reflection of internal confidence in the project’s trajectory.
Usually, investors react with caution when foundations sell, as they believe value can decline. All these developments have kept Ethereum’s price, which was already under pressure, sensitive.
Ethereum Price Faces Mixed Signals Amid Market Pressure
Bond yields are going up, which is causing problems for Ethereum and other cryptocurrencies in the same area.
30 year yields near two-year highs draw close to 5%. Rising short term yields are also a negative for risk assets.
They signal that the Federal Reserve is expected to be on a long run of heightened hawkish policies.
Looking back, cryptocurrencies fared poorly in high yield environments as capital flows to safer investments.
This is a trend across retail and institutional investors, that ultimately lowers overall crypto market liquidity. These broader macroeconomic headwinds have been felt on Ethereum as well.
Ethereum’s three-day price chart can’t provide a consensus of whether to shill or short. An inverse head and shoulder pattern on the bullish note suggests a rally to $4,000.
Under this optimistic scenario, historical first quarter performance trends support this conclusion from historical trends for Ethereum.
On the other hand, a possible formation of a triple top close to $4,085 creates a risk of a new sell-off.
Prices could fall to $2,156 if this bearish pattern comes about, which would be a 35% plunge. This falls in line with diverging patterns.
At the same time it spells an uncertain outlook for Ethereum with the mounting pressures. The sheer sale of Ethereum by insiders, the rise in exchange balances, and the macroeconomic climate are all obstacles to Ethereum price.
Sentiment is bearish and technical patterns indicate small potential for recovery and similarly there is potential for further losses.
The cryptocurrency’s life and bond market trends are still toiling on investors who are wary of the foundation’s actions.
