Ethereum Foundation has recently offloaded another *100 ETH* for approximately $420,470*, raising eyebrows about its ongoing sell-offs this year. The *Ethereum Foundation, which operates as a non-profit organization, has now sold a total of *4,466 ETH* this year alone, accumulating around $12.62* million* from these transactions. This steady stream of ETH sales prompts a closer look at what’s driving the Foundation’s strategy.
Notably, this transaction on December 17 followed closely after another sale of *100 ETH* for *374,334 DAI* earlier in the month. These frequent sales have market analysts worried about the potential impact on the ETH price. With a hefty $970.2* million* in reserves, most of which is held in Ethereum, the Foundation’s actions seem puzzling, especially amid rising market pressures.
As some observers raise questions about the Foundation’s intentions, Vitalik Buterin, co-founder of Ethereum, has stepped in to clarify. He claims that selling ETH is a strategic move to fund public projects while safeguarding necessary reserves. But despite these justifications, the continuous selling raises alarms, leading some to speculate about its long-term effects on the cryptocurrency’s value.
Looking at the current market, Ethereum recently experienced a price surge, briefly crossing the $4,010* threshold—the first time since March *2024. However, historical patterns suggest that each time ETH reaches such heights, a significant price correction follows. Current data highlights rising exchange reserves of nearly *100,000 ETH—roughly worth *$400* million—indicating potential downward pressure as ETH nears a *six-month high.
Additionally, the Relative Strength Index (RSI) is trending downward, which typically signals a bearish momentum. Analysts estimate a potential *12% decline in ETH’s price, with predictions suggesting it could slide to around *$3,500**.
As the Ethereum Foundation continues its liquidation amidst a complex market backdrop, the crypto community remains vigilant. The implications of these moves could resonate far beyond the immediate financial landscape, impacting investor sentiment and the overall health of the Ethereum ecosystem. More content in ZCrypto.
