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- Exchange-held ETH balances are increasing, signaling potential sell pressure.
- The Ethereum Foundation sold 4,666 ETH in 2024, including a recent 100 ETH transaction for 329,463 DAI.
- Despite SEC approval for U.S. spot Ether ETFs, institutional interest remains tepid compared to Bitcoin.
Ethereum price has been making red daily candles for the last couple of days. These occurrences came as ETH inflow on exchanges rose, and a Swiss-based non-profit Ethereum Foundation focused on advancing the Ethereum (ETH) network continued dumping.
Another factor influencing this occurrence is US30Y or United States 30-year government bond yields, which are surging.
Now, as the market watches closely, the question looms: will Ethereum price reclaim $4,000, or is a dip below $3,000 on the horizon? The coming weeks could hold the answer.
Ethereum Price Overview of Last Few Months
The final quarter of 2024 brought a dramatic shift in the crypto market, fueled by the U.S. presidential election. Donald Trump’s victory over Kamala Harris, backed by his pro-crypto campaign promises, ignited investor optimism.
This enthusiasm pushed Bitcoin beyond the $100,000 mark, eventually peaking at $108,000 by mid-December. On the same day, Ethereum price reached its yearly high of $4,109, marking a celebratory moment for crypto enthusiasts.
However, as December unfolded, market momentum began to wane. Bitcoin retraced from its record high, while Ethereum price ended the year at $3,345, a noticeable drop from its earlier peak. Hopes for a Santa Claus rally faded, leaving traders disappointed and the market subdued.
Looking ahead to 2025, optimism returned with the arrival of the new year. A fresh rally lifted Bitcoin and altcoins, including Ethereum, offering a glimmer of hope for the months to come.
But the euphoria was short-lived. Veteran trader Peter Brandt warned of potential corrections. Adding to the uncertainty, Ethereum balances on exchanges continued to rise.
An overall sell pressure was visible and to worsen matters, the Ethereum Foundation sold 100 ETH midweek and hinted at further sales. Now (press time), Bitcoin trades at $93,307, while Ethereum struggles to maintain its footing at $3,287, which is below its previous Christmas levels.
Ethereum Foundation Resumes Sell Routine
For the first time in nearly two years, the yield on the United States 30-year government bond is approaching the 5% threshold. Which has been sparking concerns across financial markets, including the crypto sector.
The Rising bond yields, whether for long-term instruments like the 30-year or shorter-term ones such as 10-year and 5-year notes, often signal trouble for relatively riskier assets. Cryptos like Bitcoin, Ethereum, and Solana have not been immune. Which are showing signs of underperformance as yields climb.
The impact is evident in on-chain data. According to Chainalysis, exchange balances for major cryptocurrencies have been rising steadily. Which is a clear sign that investors are offloading assets.
In the graph study, this trend began to accelerate after exchange balances hit a low on November 24. This marks the start of a strong uptrend in selling activity.
Adding to market tension, the Ethereum Foundation has resumed its routine ETH sales. Recently, the foundation converted 100 ETH into 329,463 DAI stablecoins. Which is continuing a pattern seen throughout 2024, per the X post.
Over the year, the foundation sold a total of 4,666 ETH at an average price of $2,823, netting approximately $12.61 Million. Historically, Ethereum Foundation sales have often preceded price declines, raising concerns among market participants.
While the foundation still holds a substantial reserve of 269,600 ETH worth $889.02 Million, according to Arkham.
Meanwhile, institutional interest in Ethereum remains lukewarm compared to Bitcoin. Despite the historic approval of U.S. spot Ether ETFs by the SEC. These investment vehicles have struggled to gain traction.
The lack of significant institutional inflows reflects ongoing hesitancy in the market. This is adding another layer of uncertainty to Ethereum’s near-term outlook.
Will Bearishness Continue in Ethereum’s Price?
On ETH’s daily chart, bears appear to be in control, as the price has dropped below both the 20-day and 50-day EMA bands. The decline was sharp and dramatic, resembling a fall from a great height.
However, Ethereum price still holds above the critical 200-day EMA band. Which is signaling that its long-term bullish narrative remains intact, at least for now.
Analysts are closely monitoring the $3,000 to $3,100 range as a crucial support zone. As long as Ethereum’s price stays above this range, the optimistic projections from industry experts remain in play.
A decisive breach of this level, however, could invalidate these bullish forecasts and signal the possibility of further declines. The coming weeks will test Ethereum’s resilience.
Whether it can withstand this bearish phase and regain upward momentum remains uncertain. For the moment, its position above the 200-day EMA band provides a small hope amidst a rough market.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
