The Ethereum Foundation has announced plans to sell 10,000 ETH to fund research and development. The decision sparked debate about its potential impact on the market.
However, compared to the large purchasing power from recent institutions and finance companies, this sales seem to be nothing more than a “small ripple” in the liquidity stream. Currently, the focus is in the price range of $4,200-4,500, and it will determine whether ETH continues to break the new highs or enter short-term fixes.
Does Datco demand absorb sales pressure?
The Ethereum Foundation (EF) has confirmed that it will convert 10,000 ETH through intensive exchange (CEX) “within the next few weeks of this month.” The current price for ETH is around $4,341. Proceeds fund research and development, grants and charity.
The move has been made public following previous ETH sales by EF. Observer statistics show that EF tagged wallets have deposited around $2.78 billion with CEX over the past decade.
Previous ETH sales by EF. Source: X corner.
One user of X also noted that EF has sold nearly $100 million in assets in recent months. In the past, EF has been criticized for sharing bullish messages with the community while quietly selling ETH. However, the community appreciates the transparency this time. As another X comment said, “Fortunately, they’re honest about it this time.”
Early announcements will reduce the “information shock” slightly, limiting the negative psychological impact on the market. This suggests that EF sales activities are cyclical to fund ecosystems rather than speculative dumping.
Still, the community is concerned that EF sales could cause supply pressure and lead to lower prices. Fortunately, recent inflow data shows strong demand. 403,800ETH was absorbed within a week. So, the 10,000 ETH sale on EF looks insignificant in the big picture.
At the same time, the waves of ETH accumulation by Datcos further support this perspective. Sharplink, Bitmine and other transactions show that they are large enough to offset regular EF sales. If this trend continues, sales pressure from 10,000 ETH could only be short-term noise in the expansion of the liquidity environment.
“For comparison, the single $ETH Treasury has purchased more $ETH than it sold in the last 3 months (90 days) over the last 10 years,” said an X user.
Technical outlook
From a technical standpoint, the $4,200 zone has already “clears liquidity” and shows rebounds. Meanwhile, the $4,500 level is a critical resistance that needs to be recovered to extend the bullish trend, with targets of $4,650 and $4,800.
In a wider time frame, analyst Benjamin suggested that Ethereum would rally at an all-time high before revising it to a 21-week EMA. “I think Ethereum will fall to 21W EMA in the next four or six weeks (regardless of what Bitcoin does). After Ethereum hits 21W EMA, it should rally at all time highs,” Benjamin pointed out.
ETH Weekly Price Chart. Source: Benjamin from X.
The fact that ETH touched and approached ATH in late August makes this technical “breathing chamber” seem reasonable. So, if the $4,200 level is lost, the short-term drawback risk remains real. However, as long as the higher and higher quality structures are intact and institutional liquidity continues to provide support, the medium-term outlook remains positive.
Post Ethereum Foundation selling 10,000 ETH: Can it be maintained? It first appeared in Beincrypto.
