Why Did the Ethereum Foundation Sell 10,000? Will Ethereum's Support Line Hold Amid Fund Outflows?

▲ Ethereum (ETH) ©

The Ethereum (ETH) Foundation's large-scale over-the-counter (OTC) sale of 10,000 coins to a major financial firm, coupled with a halt in inflows to spot exchange-traded funds (ETFs), has led the leading altcoin to face a corrective market environment, precariously testing its key support level.

According to investment specialized media FXStreet on April 24 (local time), the Ethereum Foundation announced that it sold 10,000 Ethereum coins to Bitmain Immersion Technologies via an over-the-counter (OTC) transaction at an average price of $2,387. The Foundation stated that the proceeds from this large-scale sale would be used for core operations and activities such as protocol research and development, and ecosystem creation.

This transaction further expanded Bitmain's digital asset holdings. The company recently acquired 101,627 Ethereum and subsequently staked an additional 93,600, reportedly securing a massive total of 4.97 million units. In contrast, US spot Ethereum exchange-traded funds (ETFs) concluded their 10-day consecutive net inflow streak from the 9th to the 22nd, recording a painful net outflow of $75.9 million, dampening market investor sentiment.

This capital outflow occurred while Ethereum faced continuous downward pressure around its on-chain average cost of $2,308. Volatility was also detected in the derivatives market; according to CoinGlass data, forced liquidations totaling $26.8 million, including $14.4 million in long positions, occurred over the past 24 hours, leading to significant losses for buyers.

From a technical perspective, Ethereum is currently in a tight tug-of-war around the $2,320 level. On the daily chart, it is barely defending a positive bias above the 20-day exponential moving average (EMA) at $2,280, the 50-day EMA at $2,230, and an ascending trendline near $2,301. The 14-day Relative Strength Index (RSI) hovers around 55, and the Stochastic Oscillator remains at a neutral level, suggesting that buying momentum has not completely collapsed.

In the short term, the trendline at $2,301 and the 20-day and 50-day EMAs are expected to act as the primary defense line. If this support zone breaks, there is a risk of a decline to $2,211 and $2,107. Conversely, if it overcomes downward pressure and firmly breaks through the 100-day EMA at $2,372 and the resistance wall at $2,388, the media added that a new upward wave towards $2,746 and $3,411 could be anticipated.

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