Ethereum Foundation Sells $34M ETH to Bitmine, More Selloff Incoming?
Highlights
- Ethereum Foundation sold $34M ETH to Bitmine, raising selloff concerns.
- Bitmine aggressively accumulates Ethereum, providing potential long-term support.
- Ethereum struggles below the $2,400 resistance, and losing the $2,270 support could risk further decline.
The Ethereum Foundation has been on the investors’ radar lately due to its continuing ETH selling. According to reports, it has been selling Ethereum to Tom Lee’s Bitmine (BMNR), as the ETH treasury firm has continued to bet on the second-largest crypto by market cap.
However, it has also raised concerns about whether the Ethereum Foundation would continue its selling spree in the coming days. Although the active bets from Bitmine have allayed some concerns, the ongoing selling pressure by the Ethereum Foundation has weighed on the market sentiment.
Is the Ethereum Foundation Planning to Sell All Its ETH Holdings?
The Ethereum Foundation has been aggressively offloading its ETH holdings over the past few days. Most recently, it has finalized to sell 10,000 Ethereum to Bitmine (BMNR) at an average price of $2,387 per ETH.
Meanwhile, the Arkham report showed that the Ethereum Foundation has sold $33.51 million in ETH so far to Bitmine. In addition, the blockchain analytics firm highlighted that it still holds $214.8 million in ETH, sparking concerns of continuing selling ahead.
On the other hand, Arkham noted that if EF continues to sell at the current rate, it would offload all its Ethereum holdings by 2027. However, despite that, the aggressive buying of Bitmine has offset concerns, which many investors believe will provide long-term support to the crypto.
Bitmine Continues to Bet: What’s Next for ETH Price?
According to the latest update, Bitmine purchased another 101,901 ETH, valued at $236 million, last week. This brings its total ETH holdings to 5,078,386, worth $11.76 billion, which has made headlines in the crypto news column.
However, despite the ETH buying news, Bitmine (BMNR) stock fell nearly 3% today to $21.55, amid a broader crypto market selloff. For context, Ethereum price was also down around 3.2% at the same time and traded near the $2,270 mark.
Meanwhile, the crypto has been consolidating for a long time and has struggled to clear a key resistance. Renowned market expert Cheds Trading has also highlighted the consolidation of ETH price below the $2,400 resistance, breaking which is crucial for its next upward run ahead.
Simultaneously, the chart also highlighted the current level near $2,270 as a major support, losing which could trigger another selling pressure to the $2,000 level.
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