ETH Price Analysis: Ethereum Foundation Spotted Moving 50,000 ETH, Is It Bullish or Bearish?

ETH price opened trading around the $2,630 level on Feb 10, entering a 3-day stagnation phase. Historical data suggests Ethereum Foundation’s latest 50,000 ETH transaction could potentially spark volatile market reactions in the week ahead.

Ethereum Price Settles at $2,600 as Bearish Pressure Subsides

Ethereum (ETH) has struggled to gain momentum in the first week of February, facing multiple bearish catalysts. Internal challenges, including controversial network updates and an increasing circulating supply, have hindered bullish advances. Additionally, macroeconomic headwinds from the U.S.-China trade war have exacerbated the downturn.

Between February 1 and February 7, ETH price experienced a sharp 20% decline, dropping from $3,300 to the $2,600 level. Since February 7, the downward momentum has halted as selling pressure has eased considerably. However, despite this stabilization, ETH has yet to stage a meaningful recovery from last week’s losses.

While other top altcoins like Binance Coin (BNB) and Solana (SOL) have posted gains over the weekend, ETH has remained stagnant within a tight $2,500 to $2,700 range. This consolidation closely mirrors Bitcoin’s price hiatus, highlighting investor indecision and a wait-and-see approach among traders.

Ethereum Foundation Spotted Moving 50,000 ETH, Sparking Speculation

Ethereum’s stagnation over the weekend coincided with shifting investor focus towards the broader altcoin market. While Bitcoin’s price inactivity has been attributed to a miner sell-off, as highlighted by Capriole Investments founder Charles Edwards, ETH’s sideways movement appears to be influenced by recent Ethereum Foundation transactions.

On February 9, blockchain security and analytics platform PeckShield flagged a significant transaction involving the Ethereum Foundation—the organization responsible for overseeing the network’s operations and development.

“#PeckShieldAlert The Ethereum Foundation has transferred 50,000 $ETH (worth ~$131.6M) to EF: DeFi Multisig for supporting and participating in the Ethereum DeFi ecosystem.”

– PeckshieldAlert, Feb 9, 2025.

Notably, PeckShield clarified that the 50,000 ETH (~$131.6 million) was not liquidated but rather transferred to a new multi-signature wallet intended to support Ethereum’s DeFi ecosystem. In theory, this could be a bullish sign, signaling further investment in DeFi projects and ecosystem development.

However, historical trends suggest that ETH prices have often dipped following large Ethereum Foundation outflows. Insider sell-offs or major fund reallocations tend to trigger bearish sentiment among holders, as they raise concerns over potential future liquidations. These moves can also deter new market entrants who may fear increased volatility or further downside pressure.

While this latest transaction was not a direct sell-off, traders are likely to remain cautious until further clarification emerges. Without a major positive uptick in broader market sentiment, ETH price could struggle for  momentum at the start of the week.

Looking ahead, investors will closely monitor Ethereum Foundation’s wallet activities and market reactions to gauge whether this latest development will ultimately serve as a bullish catalyst or signal renewed selling pressure. Until then, ETH’s short-term trajectory remains uncertain, with technical indicators pointing to both potential upside and risks of further stagnation.

Ethereum Price Forecast: $2,750 Breakout Could Spin Market Sentiment

Ethereum price prediction chart below presents a bearish-leaning outlook, as the asset continues to trade within a consolidation phase near $2,575. The falling wedge pattern, which previously provided a relief rally, has been invalidated by the latest breakdown, reinforcing near-term downside risks.

Volume analysis reveals a notable decline in participation, suggesting a lack of bullish conviction at current levels. RSI stands at 29.61, deep in oversold territory, implying a potential technical rebound, but with the indicator still sloping downward, momentum remains weak.

For the bullish scenario, ETH would need to reclaim $2,750 as a support level to regain market confidence. A break above this level could trigger fresh buying pressure, opening the door for a recovery toward $3,000, where the prior resistance cluster resides. If buyers return, a shift in sentiment could propel ETH higher, mirroring gains seen in altcoins like Solana and Binance Coin.

Conversely, failure to hold the $2,500 support could exacerbate selling pressure, potentially driving ETH toward $2,400 or lower. With historical data showing price declines following Ethereum Foundation transactions, traders remain cautious, and unless demand picks up, Ethereum could struggle to regain upward momentum in the near term.