- Ethereum Foundation sold 100 ETH on December 17, triggering a ~17% price drop and raising market concerns.
- Over the past year, Ethereum Foundation liquidated 4,466 ETH worth $12.6 million, often at market peaks.
- Foundation sales are linked to bearish market signals, with some transactions preceding price declines of up to 3%.
On December 17, the Ethereum Foundation sold 100 ETH, triggering a ~17% drop in the price of Ethereum (ETH). This transaction is part of a broader pattern observed over the past year, where the Foundation has liquidated 4,466 ETH, valued at approximately $12.6 million, across 32 transactions.
Analysts note that many of these sales occurred near market peaks, prompting discussions about their impact on price trends.
Since the #EthereumFoundation sold 100 $ETH on Dec 17, the price of $ETH has dropped by ~17%, marking another successful top sale.
Over the past year, #EthereumFoundation has sold 4,466 $ETH($12.6M) across 32 trades, with 15 of them executed at the top(marked in red in the… pic.twitter.com/DA7nGAgbxr
— Lookonchain (@lookonchain) December 20, 2024
Data shows that the Foundation’s sales often coincide with subsequent price corrections. For instance, the January 9 sale of 100 ETH at $324,000 led to a 0.93% decline in ETH’s price within three days.
Similarly, the February 12 sale of 700 ETH for $2,166,466 preceded a 3.05% drop. These patterns suggest that Ethereum Foundation transactions could serve as bearish indicators for the market, creating a wave of uncertainty among investors.
The psychological effect of these sales amplifies their market impact. Observers in the Ethereum trading community often interpret Foundation sales as signals of potential downturns, contributing to FUD (Fear, Uncertainty, Doubt).
This reaction can result in additional sell-offs, further destabilizing ETH prices. For traders and long-term holders, monitoring these sales is essential to navigate potential market volatility effectively.
The Foundation’s evolving approach to Ethereum also comes into play. With the rebranding of “Ethereum 2.0” to the “consensus layer” and “execution layer,” Ethereum continues to refine its development narrative. However, these structural updates do little to mitigate the concerns raised by the timing and volume of the Foundation’s sales.
Currently, ETH trades at $3,205.83, with a 24-hour trading volume of $59.8 billion, according to CoinMarketCap. Given the historical correlation between Foundation sales and market trends, investors and analysts are paying close attention to future transactions.
The current price of Ethereum (ETH) is approximately $3,205.6, reflecting a significant drop of 6.14% over the last 24 hours. Ethereum has experienced notable market volatility, with its price recently falling below the critical resistance level of $3,650 and finding support around $3,350.
Its market capitalization is currently $386.51 billion, with a 24-hour trading volume of $75.47 billion.
This decline follows broader crypto market reactions to macroeconomic factors, including a hawkish stance by the Federal Reserve, which has triggered over $1 billion in leveraged positions being liquidated, affecting Ethereum significantly.
Despite this, Ethereum’s year-to-date performance shows a robust gain of 40.61%, highlighting its resilience amid market pressures.
Key resistance levels to watch are $3,650, while further declines may test support around $3,320.
