Ethereum Foundation Looks to Sell 1,000 ETH, Will Price Crash Again?

Ethereum Foundation sent 1,000 ETH to the Kraken exchange on April 22, likely to sell. This could lead to a potential drop in price. In the past, EF has been criticised for selling ETH, adding overhead selling pressure to the lackluster price performance. The recent transfer of 1000 ETH worth $1.58 million to an exchange could lead to a dip in ETH price.

CryptoRank’s research shows Ethereum Foundation sold “a total of 4,466 ETH for $12.61M at an average price of $2,823″ in 2024. This move often preceded sharp declines in ETH’s value.

A study from CoinGecko states that “EF’s sales can trigger immediate price reactions,” however, “broader market forces” tend to offset this volatility in the long-term trajectory of Ethereum price.

Ethereum Price Today: Why is ETH Up 0.25% Today and Trades at $1,582?

As of April 22, Ethereum price is up 0.25% after recovering from a 2.76% retracement from its open price. ETH price today trades at $1,582, and the ongoing recovery could come undone if Bitcoin (BTC) drops. Concerns of a leverage-driven pump on BTC and Ethereum Foundation selling ETH could cause the second-largest cryptocurrency to drop.

Ethereum Technical Analysis: What’s Next for ETH Price?

Overall, the daily chart shows a string of lower highs and lower lows for Ethereum price, signaling a downtrend. Despite this downtrend, there might be volatile move that could undo the downtrend due to sideways movement of Ethereum for the 10th consecutive day.

This range tightening indicates compressed volatility, a breakout from which could catlayze a massive move. With $1,504 acting as a key support level, the chances of a sustained move to the upside is high. However, the Ethereum price prediction needs to remain neutral due to the uncertain macro and geopolitical conditions.

Ethereum Foundations sale could result in a steep correction that revisits $1,504 support level. But a breakdown of this key support could result in a correction to $1,200 or lower. This bearish outlook will be in full swing if Bitcoin price undoes rally to $88K, which many consider to be leverage-driven pump.