Ethereum Foundation Sells 100 ETH, Impact on Price Analyzed

The Ethereum Foundation sold 100 ETH, which attracted a lot of attention in the market. This is the first ETH sale that the foundation has made since it released its 2024 annual report on November 8.

As per Spotonchain data, the sale which occurred about 45 minutes prior to this analysis, involved the conversion of 100 ETH into 334,315.7 DAI, reflecting strategic asset management as the foundation navigates funding and market conditions.

Ethereum Foundation 2024 Asset Strategy

The Ethereum Foundations 2024 report revealed that, as of October 31, the organization had total reserve assets worth $970.2 million. Most of these assets are crypto assets, which are worth $788.7 million. ETH is 99.45% of this amount.

The foundation sells ETH from time to time to keep enough reserves and to support public projects. Since the beginning of 2024, it has sold 4,266 ETH and raised $11.83 million. The average price of these sales was $2,773 per ETH. This sale follows its plan to keep its funding mechanism balanced.

The Ethereum Foundation sold 100 $ETH for 334,315.7 $DAI again ~25 minutes ago.

This is the first $ETH sale since @Ethereum Foundation released its 2024 report on Nov 8, showing asset reserves at $970.2M as of Oct 31, with $788.7M in crypto (99.45% in $ETH).

— Spot On Chain (@spotonchain) November 12, 2024

Recent ETH Price Movements and Market Analysis

Following the foundation‘s sale, Ethereum’s price movement over the past day highlighted several key trends. Initially, ETH experienced a dip around $3,191, marking the first support level. This early decline indicated some selling pressure but did not trigger a significant shift in momentum.

Source: Coinmarketcap

ETHs price soon rebounded, climbing to a peak above $3,350, suggesting a strong resistance zone. This resistance became evident as the price struggled to break through and maintain levels above $3,350. Subsequent fluctuations in the $3,300 to $3,350 range indicated consolidation, with traders appearing cautious around this price point.

ETH surged to a new peak near $3,450 before facing a sharp pullback. This higher peak established a new resistance level at $3,450, demonstrating the challenges faced by ETH in maintaining upward movement.

Support, Resistance Levels, and Technical Indicators

Key support levels for ETH emerged at $3,191 and $3,284, with resistance identified around $3,350 and $3,450. These levels provide insight into potential future price behavior.

If ETH passes $3,450, it will likely rise. However, if ETH falls below $3,284, it may show a bearish reversal.

ETH/USD 1-hour price chart, Source: Trading view

Additionally, technical indicators offer mixed signals. The 1-hour RSI stands at 48.19, indicating a neutral market state and potential consolidation. Moreover, the 1-hour MACD remains below the signal line, hinting at possible bearish movement in the short term.