Lookonchain reports that the Ethereum Foundation sold 100 ETH on Wednesday. The sales continued a pattern seen since January 2, 2024, with a total of 4,566 ETH sold to date.
According to analyzes by Lookonchain in the past, the Ethereum Foundation has a history of selling ETH near market peaks, which often precede market crashes. The market controller pointed out that since the Ethereum Foundation sold 100 ETH last December, the price of ETH fell by about 17%.
The #Ethereum Sell 100 base $ETH($336K) again 25 minutes ago.#Ethereum The Foundation has sold a total of 4,566 $ETH($12.96M) as of January 2, 2024.https://t.co/DvIQFqZ96D pic.twitter.com/RBeXyPYgGP
– Lookonchain (@lookonchain) January 8, 2025
Over the past year, the foundation has reportedly sold over $12 million worth of ETH across 32 trades, with 15 of those transactions occurring at the top of the market.
The sale of Ethereum Foundation is causing a market downturn
After the news of Ethereum Foundation sale, ETH lost 0.6% of its value in just 10 minutes. Over the past day, the second largest crypto by market cap has seen a 7.9% drop, now trading at $3,346 per coin, according to Coingecko data.
Medium donor Yumi Sumiko claims that the foundation is selling ETH to manage its operating costs and to fund ongoing development and research within the Ethereum ecosystem.
Being a non-profit organization, Sumiko noted that it is not involved in these sales for profit but to ensure the financial sustainability of its projects.
“The foundation is not just sitting on its assets and watching them grow. Instead, it actively chooses to invest in the Ethereum ecosystem, guaranteeing that this blockchain will be around for the long haul. ” Sumiko confirmed again.
Per TradingView analysis, Ethereum (ETH) is currently forming a bearish position. The price is breaking down from a rising trend line near a protection zone, suggesting a possible move to a support zone near $3,061. This bearish view is supported by an increase in selling pressure, as indicated by fundamentals.
In a recent study published by WaveTraders, Ether is expected to experience a major pullback. The analysts believe that ETH is currently in a bearish correction phase of a larger correction pattern.
This suggests that, after a period of upward momentum, Ethereum may be entering a phase where a deeper decline is expected.
Ethereum market sentiment remains bearish
Over the past few months, Ethereum has maintained a stable position above the $3,000 threshold. However, its erratic movement has caused a lot of panic among investors who were expecting a rise towards new all-time highs.
An analysis of ETH funding levels, a key indicator that indicates the aggressiveness of buying or selling in the futures market, reveals interesting trends. When ETH approached the $4,000 mark, funding levels increased, indicating significant buying pressure.
Interestingly, this peak was followed by a series of long drawdowns, which not only corrected the price but also initiated a phase of consolidation. Funding rates have fallen to 0.052%, down from 0.093% in the past 24 hours, with a total liquidation of $140 million. Bullish positions suffered the biggest loss at $118 million.
Ethereum derivatives have had a major setback due to a widespread meltdown in the crypto market, with open interest decreasing 5.51% to $30.42 billion. The long-to-short ratio has moved to a bearish 0.8968, indicating more pessimism among traders.
Adding to the bearish trend, the US ETH spot ETF reported a daily net outflow of $86.79 million. Fidelity saw $67 million in liquidation, while Grayscale Ethereum Trust recorded a decline of $11.19 million as bears gripped the market.
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Source: https://www.cryptopolitan.com/ethereum-foundation-offload-12-96m-eth-tanks/
