Ethereum Foundation's Sale of 100 ETH Triggers Market Downturn, Projecting a Bearish Outlook for ETH

Lookonchain reports that the Ethereum Foundation sold 100 ETH on Wednesday. The sales continued a pattern that has been observed since January 2

The Ethereum Foundation recently sold 100 ETH, which has sparked interest in the crypto community. Here's a closer look at the foundation's sell-offs and their potential impact on the market.

On Wednesday, the Ethereum Foundation sold 100 ETH, valued at approximately $336,000 at the time of the transaction. This sale is part of an ongoing pattern observed by the crypto market tracker Lookonchain.

According to Lookonchain, the foundation has now sold a total of 4,566 ETH, which amounts to roughly $12.96 million, in 32 separate trades since January 2, 2024. Notably, 15 of these transactions occurred at market tops.

After news of the foundation's sell-offs emerged, ETH experienced a rapid decline of 0.6% in just 10 minutes. The second-largest cryptocurrency by market capitalization has also seen a 7.9% decrease over the past 24 hours and is currently trading at $3,346, according to data from Coingecko.

However, it's important to note that the foundation typically sells ETH to cover its operational expenses and to fund ongoing development and research within the Ethereum ecosystem. Being a non-profit organization, it does not engage in these sales for profit but rather to ensure the financial sustainability of its projects.

In a recent analysis, WaveTraders projected a significant pullback in Ether, which is currently in a bearish corrective phase of a larger corrective pattern. This suggests that after a period of upward movement, Ethereum could be entering a phase where a deeper decline is anticipated.

A recent analysis of Ether derivatives reveals a bearish trend. Despite a brief rally that brought ETH close to the $4,000 level, sparking optimism, a closer examination of the funding rates paints a different picture.

At the time when ETH approached the $4,000 mark, futures traders were overwhelmingly bullish, driving funding rates to a peak. However, this exuberance was short-lived, as the high rates triggered a wave of long liquidations, which not only corrected the price but also initiated a phase of consolidation.

As the market turned bearish with crypto market liquidations, a total of $140 million in futures traders' positions were wiped out. However, bearish positions were liquidated to a lesser extent, with losses amounting to $22.16 million. In contrast, bullish positions suffered the brunt of the liquidations, incurring losses of $118 million.

Moreover, a daily net outflow of $86.79 million was observed in major US spot ETH ETFs. Fidelity saw $67 million in liquidations, while the Grayscale Ethereum Trust recorded a $11.19 million decline as bears took hold of the market.