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About a month after its most recent liquidation, the Ethereum Foundation is once again selling some of its ETH reserves. This Tuesday, it was learned that the organization liquidated 100 ETH for $374,334 DAI. This continued dumping is causing concern among investors, who fear it could lead to a currency crash.
Recently, the price of ETH surprised with a strong rally that took it above $4,000 per token. However, the joy did not last long for investors as the recent downtrend wiped out much of the gains.
As data from CoinMarketCap shows, the price of the native Ethereum token is trading above $3,700 at the time of writing. During the day this Monday, the exchange value of the currency fell to $3,567 before regaining ground again. The ongoing profit-taking trend could add to nervousness over foundation liquidations.
For investors, the biggest fear is not based on the current sell-off, since its effects are relatively controllable. The biggest problem is that the Ethereum Foundation will once again liquidate its tokens when the price of the coin shows signs of rising.
The Ethereum Foundation liquidated another 100 ETH this Tuesday. Source: Spot On Chain
The Ethereum Foundation presents itself as a bearish catalyst
According to data from specialized portals, the sale of the foundation’s tokens adds to a series of liquidations this year. To date, the organization has sold a total of 4,366 ETH worth $12.12 million. A relevant aspect of this liquidation is that the average sale price per token is $2,796.
These liquidations well below the current exchange value of the currency make investors suspicious of further future sales to compensate. Consequently, if the price of ETH heads towards new highs in 2025, the foundation could again sell part of its reserves in that currency. Simply put, this is not a hopeful outlook for investors.
Despite this unfavorable outlook, technical indicators suggest that the currency will have an outcome in any scenario. According to the CoinCodex portal, out of a total of 33 indicators, 27 of them suggest that the price of ETH will rise. Meanwhile, the market sentiment index on that same site indicates that 87% have bullish expectations.
As you can see, investors are willing to increase their demand for Ethereum (ETH), but that does not seem to be the same attitude of the foundation. The reserves of this foundation are estimated at just over $1 billion, and almost 30% of them are in ETH and another 20% in WETH. Precisely, the latter is the origin of anxiety about the possible continuation of dumping.
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