The Ethereum Foundation has recently been making headlines for its decision to sell off a portion of its ETH holdings as the token continues to soar to new heights. In two transactions, the Foundation sold a total of 2,795 ETH, amounting to nearly $13 million. This move comes as ETH is currently trading above $4,600, its highest level since November 2021. The Foundation has stated that the proceeds from these sales are used to support ecosystem development and operations.
On-chain data has revealed multiple wallet movements by the Ethereum Foundation over the past 24 hours, starting with a 1,695 ETH sale followed by another 1,100 ETH dump. These transactions totaled approximately $12.8 million. The wallet receiving these assets originally received them in 2017 from another wallet associated with the Foundation. The recent sales coincide with ETH’s strong rally, as prices reach new multi-month highs.
Ethereum has seen an 8.3% increase in the past 24 hours, trading at around $4,635. The cryptocurrency has reached an intraday high of $4,683, levels not seen since November 2021. Institutional demand, particularly from exchange-traded funds and corporate acquisitions, has been a driving force behind ETH’s price surge. Ethereum ETFs recently experienced a record single-day inflow of $1.02 billion, with corporate treasuries also investing over $14 billion in ETH.
With these significant inflows, many investors and analysts are anticipating ETH to retest its all-time high of $4,800 and potentially break beyond that level. While the Ethereum Foundation’s recent asset sales may raise concerns, they have emphasized that these sales are necessary for covering operational expenses, grants, salaries, and other ecosystem maintenance costs.
Although the Foundation’s selling strategy has faced criticism in the past, the strong performance of ETH in the market has somewhat mitigated concerns about potential negative impacts. However, continued selling by the Foundation could lead to renewed scrutiny of their timing and approach. As ETH continues its upward trajectory, all eyes will be on how the Foundation manages its holdings to support the growth and sustainability of the Ethereum ecosystem.