Ethereum Foundation’s ETH Sell-Off Triggers Panic Among Traders

NAIROBI (TheCoinRepublic.com)— The Ethereum Foundation decision to sell 100 ETH, totaling 307,893 DAI, has fueled controversy within the crypto community. This move coincides with a broader market downturn, with Ethereum prices dropping 7% over the past 24 hours to hover near the $3,000 mark.

Ethereum Foundation Faces Backlash for Selling ETH

Data from Spotonchain revealed the Ethereum Foundation offloaded 100 ETH at an average price of $3,078.93. This marked the third sell-off by the organization in 2025, bringing the total to 300 ETH sold for 980,388 DAI. Critics argue that such actions undermine market confidence, particularly during a downturn.

Despite the backlash, the Ethereum Foundation claims these sales support the network’s development and organizational restructuring. Ethereum co-founder Vitalik Buterin outlined plans to revamp the nonprofit, which includes staking assets and bolstering governance. However, these developments have not quelled concerns within the crypto space, where skepticism toward the foundation’s motives persists.

Market Sentiment Dampens as Prices Tumble

Ethereum’s price action reflects broader market conditions ahead of the Jan. 29 Federal Open Market Committee (FOMC) meeting. ETH has fallen from an intraday high of $3,343 to a low of $3,024, mirroring a $860 million liquidation across the crypto market.

The decline has also exposed vulnerabilities in Ethereum’s network activity. Large transactions have dropped 61%, while overall transaction volume has plunged 70%, according to on-chain data. This sharp decline in network demand suggests waning confidence in Ethereum amid the sell-off.

Ethereum Teeters at $3,000: Will It Hold or Slip?

Ethereum’s price has hit a nerve-wracking moment, dancing dangerously close to the $3,000 support. The daily chart shows ETH trapped in a descending channel, with its inability to surpass the $3,515.7 Fibonacci retracement level adding weight to the bears’ cause.

The RSI sits at 41.77, hinting at oversold conditions that might give bulls some hope. But let’s not get carried away—the three sharp red candles paint a different picture, one of relentless selling pressure. If ETH falls through $3,000 and slides toward $2,932.4, it could open the floodgates for further declines.

A rebound would require ETH to claw back above $3,200, aligning with the channel’s upper boundary and the 200-day EMA. That’s a tall order, given the backdrop of dwindling transaction volumes and the Ethereum Foundation’s recent sell-offs.

The question now is whether $3,000 can act as a trampoline or if it’s just a slippery slope for ETH. Traders are watching closely, but the market seems to be in a mood to test everyone’s patience—and nerves.

The Ethereum Foundation’s decision to sell ETH during a volatile period has exacerbated market concerns. While the foundation defends its actions as part of its development strategy, the timing has drawn sharp criticism.

The post Ethereum Foundation’s ETH Sell-Off Triggers Panic Among Traders appeared first on Coinchapter.