The Ethereum Foundation has once again made headlines with its recent sell-off of 100 ETH on December 17th. This marks the second time in a short span that the Foundation has engaged in such transactions, raising eyebrows and prompting speculation about its motives. Vitalik Buterin, co-founder of Ethereum, has shed light on the reasons behind these sales, but concerns persist among industry observers.
Breaking down the numbers of the latest sale, data from Lookonchain reveals that the Ethereum Foundation sold 100 ETH for approximately $420,470. This sale is just one in a series of transactions conducted by the Foundation this year, totaling 4,466 ETH and valued at around $12.62 million.
The frequency of these sales has led to questions about the Foundation’s strategy and its impact on the market. Just a week prior to this sale, the Foundation had sold 100 ETH for 374,334 DAI, further fueling speculation about the potential repercussions on the price of ETH.
Despite holding a substantial treasury of $970.2 million, mostly in Ethereum, the Foundation continues to offload its ETH holdings. This constant selling exerts pressure on the token and has raised concerns given the size of the Foundation’s treasury.
Vitalik Buterin has defended the Foundation’s actions, stating that the sales are necessary to fund public projects and maintain reserves. However, allegations of personal profit-seeking have been directed at Buterin, which he has vehemently refuted.
As Ethereum recently surged past $4,010, a level not seen since March 2024, investors are on edge about the possibility of a market correction. Exchange reserves have increased by nearly 100,000 ETH, amounting to roughly $400 million, indicating potential selling pressure as ETH approaches a six-month high.
Moreover, the Relative Strength Index (RSI) is signaling a bearish trend, hinting at a possible price decline in the near future. With these indicators in mind, ETH could see a drop of up to 12%, potentially falling to the $3,500 mark.
The Ethereum sell-off shows no signs of slowing down, making the upcoming weeks crucial in determining the cryptocurrency’s trajectory. As market dynamics continue to evolve, investors will be closely monitoring Ethereum’s performance to gauge its next major move.