Ethereum Foundation 'Dumps' Another 10,000 ETH... Investors in 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. The foundation regularly conducts sales to secure operating costs and grant funds. 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. Market participants, on the other hand, are sensitive to the timing and scale of sales. This sale occurred when the price of Ethereum was attempting to recover the $3,500 mark. The large inflow of assets directly suppressed price upward momentum.

According to technical indicators, Ethereum's volatility has increased since the news of the foundation's sale. The Relative Strength Index (RSI) has fallen to the 45 line, indicating a weakening of buying power. The Moving Average Convergence Divergence (MACD) histogram also shows signs of entering negative territory. If the support line around $3,300 breaks, there is a possibility of further decline to the psychological bottom line 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 does not easily disappear. The foundation's actions are drawing more attention at a time when institutional funds are expected to flow in after the approval of an Ethereum spot ETF. The impact of the foundation's actions on the credibility 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 amount of remaining assets is also a burden on the market. Whether additional deposits to exchanges occur in the future will 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 investment losses based on it. The content should be interpreted for informational purposes only.*