Why Did the Ethereum Foundation Sell 10,000? Will Ethereum Defend Its Support Line Amid Fund Outflows?

▲ Ethereum (ETH) ©

As the Ethereum (ETH) Foundation massively sold 10,000 coins over-the-counter to a large financial firm, and even the inflows into spot exchange-traded funds ceased, the leading altcoin faced a corrective market testing a critical support level precariously.

According to FXStreet, an investment media outlet, on April 24 (local time), the Ethereum Foundation announced that it sold 10,000 ETH to Bitmain Emergent Technologies through an over-the-counter (OTC) transaction at an average price of $2,387. The foundation stated that the proceeds from this large-scale sale would be used for core operations and activities, such as protocol research and development and ecosystem creation.

With this transaction, Bitmain's digital asset holdings have grown even larger. The company recently reportedly acquired a massive total of 4.97 million ETH, having purchased 101,627 ETH and then additionally staked 93,600 ETH. Meanwhile, U.S. Ethereum spot exchange-traded funds ended their 10-day consecutive net inflow streak from the 9th to the 22nd, recording a painful net outflow of $75.9 million, dampening market investor sentiment.

This capital exodus occurred as Ethereum faced continuous downward pressure around its on-chain average price of $2,308. Volatility was also detected in the derivatives market; according to Coinglass data, a total of $26.8 million in forced liquidations occurred over the past 24 hours, including $14.4 million in long positions, leading to significant losses for buyers.

From a technical perspective, Ethereum is currently engaged in a tight tug-of-war around the $2,320 level. On the daily chart, it is barely defending a positive bias above the 20-day Exponential Moving Average (EMA) at $2,280, the 50-day EMA at $2,230, and an ascending trendline near $2,301. The 14-day Relative Strength Index (RSI) hovers around 55, and the Stochastic Oscillator remains at a neutral level, suggesting that buying momentum has not completely faded.

In the short term, the trendline at $2,301 and the 20-day and 50-day EMAs are expected to act as the primary defense line. If this support zone breaks, there is a risk of a decline to $2,211 and $2,107. Conversely, the outlet added that if Ethereum overcomes the downward pressure and firmly breaks through the 100-day EMA at $2,372 and the resistance wall at $2,388, a new upward wave towards $2,746 and $3,411 could be expected.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*