Ethereum Foundation 'Dumps' Another 10,000 ETH... Investors Panic Sell Alert

▲ Ethereum (ETH)

The Ethereum Foundation is exerting downward pressure on the virtual asset market by selling a large volume of assets.

Cryptocurrency specialized media U.Today reported on May 2 (local time) that the Ethereum Foundation transferred 10,000 ETH to the virtual asset exchange Kraken. The transaction volume amounts to approximately 35 million dollars. The Foundation regularly conducts sales to secure funds for operational costs and grants. Large-scale asset movements are interpreted as a peak signal in the market, increasing investor anxiety.

The Ethereum Foundation has been continuously cashing out assets since 2026. The Foundation states that sales are essential to cover ecosystem research and development costs and developer salaries. On the other hand, market participants are reacting sensitively to the timing and scale of the sales. This sale occurred when Ethereum's price was attempting to recover the $3,500 mark. The large influx of assets directly suppressed price upward momentum.

Technically, Ethereum's volatility appears to be increasing following news of the Foundation's sales. The Relative Strength Index (RSI) has fallen to the 45 level, indicating a weakening of buying power. The Moving Average Convergence Divergence (MACD) histogram also shows signs of entering negative territory. If the current support level near $3,300 breaks, there is a possibility of further decline to the psychological threshold of $3,000. Whale investors are closely monitoring the Foundation's movements and maintaining a wait-and-see attitude.

Within the Ethereum ecosystem, there are strong calls for transparency in the Foundation's asset management. Ethereum founder Vitalik Buterin previously explained that the Foundation's sales were measures for ecosystem sustainability. Nevertheless, market skepticism is not easily disappearing. The Foundation's actions are drawing more attention, especially at a time when institutional capital inflow is expected following the approval of a spot Ethereum ETF. The impact of the Foundation's actions on the confidence of institutional investors is also emerging as a key variable.

This sale of 10,000 ETH is expected to act as a strong resistance factor in short-term price formation. The fact that the Foundation still holds a significant remaining amount of assets is also a burden on the market. Whether there will be additional deposits to exchanges in the future is expected to determine the direction of the market in May. Investors should track the Foundation's wallet activity in real-time and focus on risk management.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*