Why Is Ethereum Foundation Selling ETH Before Market Drops?

January 09, 2025 12:23 AM PST | By Team Kalkine Media

Why Is Ethereum Foundation Selling ETH Before Market Drops? — Image source: Shutterstock

Recent Ethereum Sales by the Foundation

Arkham Intelligence revealed that the Ethereum foundation holds a large quantity of Ether, valued at hundreds of millions in digital assets. In 2024, the foundation sold thousands of Ether at an average price of approximately $2,823 per unit. These transactions amounted to over $12 million in total and were executed prior to significant market downturns.

Market Reaction and Price Movements

Ethereum's value experienced a sharp decline following recent sales by the foundation. The asset dropped significantly within a day, with values falling from higher levels into the mid-$3,000 range. After the decline, a marginal recovery was observed, although bearish sentiment persisted.

Purpose of Ethereum Sales

Proceeds from Ethereum sales by the foundation are used to fund its operational expenses and advance research and development initiatives within the blockchain ecosystem. This activity demonstrates an ongoing focus on building and expanding Ethereum’s capabilities.

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