Key Insights:
- The Ethereum Foundation caused a stir due to a proposed 10,000 ETH sell-off
- Analyst highlights $3,800 as the final support target for the ETH price correction
- ETH remains bullish based on increasing institutional accumulation
The Ethereum Foundation (EF) has disclosed plans to sell 10,000 ETH, valued at about $42.7 million. This proposed sale has raised questions and speculations about an imminent price crash.
Currently, the ETH price does not appear strong, but analysts remain bullish about future outcomes.
They cited positive technical structures and continuous ETH accumulation by institutional players to back their argument.
The Ethereum Proposed Selloff
On-chain analytics platform Lookonchain confirmed that the EF moved 10,000 ETH from one of its public wallets to Kraken. This is not a one-time dump, but a proposed sale.
The Foundation has publicly stated that it plans to sell the 10,000 ETH gradually over the coming weeks.
Notably, the proceeds will fund research and development, ecosystem grants, and donations to further the growth of the network.
The Ethereum Foundation holds significant ETH reserves as part of its endowment. Periodic sales like the recent one are part of its transparent financial policy to sustain operations without relying on external funding.
According to Lookonchain, the Foundation still holds 224,800 ETH valued at roughly $1.05 billion in its wallet.
Therefore, the proposed sale represents only about 4.4% of their total stash. As such, it is not a liquidation event but a routine funding mechanism.
However, such moves can create short-term selling pressure on the price of ETH, as it signals supply entering the market.
So far, the transfer has not caused a dip in the value of ETH. Over the past 24 hours, ETH has increased slightly by 0.3% to $4,383. ETH trading volume also increased 15.56% to $39.4 billion.
Ethereum Correction Analysis
Crypto investor and OKX Partner Ted Pillows on X has also shared his sentiment about the ETH price outlook.
Ted Pillows mentioned that ETH still holds $4,200 in support. This means the price has found a temporary floor around that level during a recent dip.
However, he noted that overall price action does not look very strong, suggesting potential for a deeper retest.
The analyst views $3,800 as the final support target for the correction. This implies a short-term bearish scenario where ETH could retrace to around $3,800 as the bottom of the current correction phase.
This is possibly due to the EF’s selling pressure and broader market factors like Bitcoin (BTC) dominance.
According to Ted, a drop to $3,800 is a healthy correction in a bull market, potentially setting up for higher prices if it holds.
Beyond the 10,000 ETH selloff, is the Coin Still Bullish?
Another market analyst, Henry, noted that ETH looks bullish to him. He outlined strong bullish takes to balance the narrative.
Henry anticipated that ETH would follow a pattern similar to its previous rally. He cited technical patterns, historical rallies, and institutional accumulation to back his projection.
The analyst views the ETF proposed sale as routine treasury management, not a red flag. He points to the last rally as precedent.
He further pointed out that institutional players’ recent ETH accumulation trend was key to sparking an ETH rally.
Henry cited specific examples like Sharplink Gaming purchasing 39,000 ETH in the past week. As a result, the firm now holds a total of 837,000 ETH coins. Henry claims this heavy bag accumulation counters the EF sales.
Meanwhile, BitMine remains the leading Ethereum corporate holder with a total of 1,866,974 ETH coins.
Public companies treating ETH as a reserve asset validate its value. To Henry, ETH remains bullish long-term due to its ecosystem dominance.
Ethereum investors even anticipate that ETH could hit $5,000 this month, amid a possible rate cut by the U.S. Federal Reserve.
