Ethereum Foundation Sparks Fear with 100 ETH Sell-Off

January 28, 2025 by Mutuma Maxwell

• Ethereum’s transaction volumes have dropped by 70% amid ongoing market turbulence.
• The Ethereum Foundation has sold 100 ETH tokens at $3,078.93 during the market slump.
• Total ETH sales by the Ethereum Foundation in 2025 have reached 300 tokens for 980,388 DAI.

Ethereum’s (ETH) transaction volumes have taken a massive hit, dropping by 70% as the crypto market faces intense turbulence. The Ethereum Foundation added fuel to the fire by selling 100 ETH tokens during the price slump. With ETH prices testing the $3,000 mark, traders are bracing for further downside risks.

Ethereum Foundation Sells Another 100 ETH Batch

In a surprising move during the market chaos, the Ethereum Foundation sold 100 ETH tokens at $3,078.93 each. This transaction netted them 307,893 DAI, increasing their 2025 total ETH sales to 300 tokens for 980,388 DAI. These consistent sell-offs have raised eyebrows among traders, questioning their timing amid such fragile market conditions.

This latest move coincides with a market-wide downturn, with ETH losing nearly 7% in value in just a day. The $3,000 psychological support level is under intense pressure, sparking debates about a potential bearish breakout. The Ethereum Foundation’s activity may have contributed to weakening market sentiment even further.

The ETH network is also feeling the heat, with large transactions plummeting by over 61%. Data shows a decline from 12.36K large transactions to just 4.8K, pointing to reduced whale activity. Additionally, the total large transaction volume nosedived by nearly 70%, from 3.43 million ETH to 1.05 million ETH.

This steep drop in activity highlights waning demand for Ethereum across the network. A lower number of transactions suggests that even institutional players and high-net-worth traders are holding back. This slowdown could further drag Ethereum prices below the critical $3,000 threshold.

Bearish Patterns Signal ETH Price Weakness

ETH’s price action paints a grim picture, with bearish patterns dominating the charts. The formation of three bearish engulfing candles caused a sharp 10% drop, testing the $3,000 level. This pattern, known as a triple black crow, often signals extended downward momentum.

While a minor bullish reversal could temporarily push prices back to $3,145, the indicators remain overwhelmingly bearish. The RSI sits in the oversold zone, and exponential moving averages align unfavorably for bulls. A further dip to $2,913 is on the cards unless ETH reclaims $3,200 soon.

In the event of a recovery, ETH could aim for $3,358 or even $3,475 if bullish momentum returns. However, with declining transaction volumes, market uncertainty, and bearish technicals, the odds appear stacked against ETH in the near term.