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Ethereum Foundation offloads 100 ETH for $420,470, adding to frequent sell-offs this year.
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Vitalik Buterin claims ETH is sold to fund public projects, maintaining reserves for the Foundation.
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Rising exchange reserves and bearish RSI hint at a possible 12% ETH price decline.
Ethereum Foundation doesn’t seem to be stopping as they made another sell-off offloading another 100 ETH on December 17. This isn’t the first time they’ve made such a move last week, raising questions about their strategy. Perhaps ETH co-founder Vitalik Buterin explained why the Ethereum Foundation sells ETH continuously.
Ethereum Foundation Sells 100 ETH
According to data from the prominent blockchain analytics platform, Lookonchain the Ethereum Foundation offloaded 100 ETH from its holdings for approximately $420,470.
The #Ethereum Foundation sold 100 $ETH($420.47K) again just now.#Ethereum Foundation has sold a total of 4,466 $ETH($12.62M) this year.https://t.co/aEdJQoOeuv pic.twitter.com/Cd6LPm1JBu
— Lookonchain (@lookonchain) December 17, 2024
This transaction is just one of many the Foundation has made this year. So far, the Foundation has sold a total of 4,466 ETH, valued at around $12.62 million.
What’s even more interesting is that this recent sale came just a week after the Foundation offloaded 100 ETH for 374,334 DAI in mid-December. With these frequent transactions, market watchers are growing concerned about the impact on ETH’s price.
The Ethereum Foundation, a non-profit organization, continues to offload its ETH, despite holding a significant $970.2 million in treasury. The majority of its crypto holdings are in Ethereum, which only adds selling pressure to the crypto.
Vitalik’s Explanation Behind The Sell-Off
Ethereum co-founder Vitalik Buterin has previously explained that the Foundation timely sold ETH to fund public projects and maintain reserves. However, the constant selling continues to raise concerns, especially with the Foundation holding a massive $970.2 million in assets, mostly in Ethereum.
Despite accusations from some critics claiming that Buterin is selling ETH for personal profit, he has firmly denied these claims.
ETH Price Loses Momentum
Ethereum recently saw a price surge, crossing the $4,010 mark for the first time since March 2024. Historically, each time ETH reached this level, it faced a significant drop.
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 falling, pointing to a bearish trend and suggesting a possible price drop. With the current price action, there’s a strong chance ETH could decline by 12%, potentially reaching the $3,500 level.