Ethereum Foundation Dumps Another 100 ETH: Price Crash Ahead?
Mustafa Mulla17 Dec 20242 min read
The Ethereum Foundation isn’t slowing down its sell-off strategy, offloading another 100 ETH on December 17. This is the second time in recent weeks that the Foundation has made such a move, raising questions about its plans. Ethereum co-founder Vitalik Buterin has explained why the Foundation continues to sell ETH, but these frequent sales are sparking concerns among market observers.
The Latest Sale: Breaking Down the Numbers
Data from the blockchain analytics platform Lookonchain shows that the Ethereum Foundation sold 100 ETH for around $420,470 on December 17. This sale adds to a long list of sales by the Foundation this year. In total, the Foundation has sold 4,466 ETH, worth approximately $12.62 million.
Why Are These Sales Happening So Often?
What makes this latest sale noteworthy is that it came just a week after the Foundation sold 100 ETH for 374,334 DAI in mid-December. With these frequent transactions, many market watchers are starting to question how these sales might affect ETH’s price.
Ethereum Foundation’s Massive Treasury
Despite holding a large treasury worth $970.2 million, the Ethereum Foundation continues to sell its ETH. The majority of its holdings are in Ethereum, which increases selling pressure on the token. This has led to growing concerns, especially considering the size of the Foundation’s treasury.
Vitalik Explains the Sell-Off
Vitalik Buterin has previously explained that the Foundation sells ETH to fund public projects and maintain its reserves. However, the constant selling has led to accusations that Buterin is selling ETH for personal profit. He has strongly denied these claims.
Is ETH Going to Crash?
Ethereum recently saw a price spike, surpassing $4,010 for the first time since March 2024. Historically, ETH has faced significant drops whenever it reached this level, leaving investors nervous about what might come next.
Data shows that exchange reserves have risen by nearly 100,000 ETH, worth around $400 million, signaling potential selling pressure as ETH approaches a six-month high.
Additionally, the Relative Strength Index (RSI) is showing a bearish trend, suggesting that a price drop could be on the horizon. Given the current price movement, ETH could fall by as much as 12%, potentially reaching the $3,500 level.
With Ethereum’s sell-off showing no signs of slowing down, the coming weeks could be crucial in determining its next big move.
