Ethereum News Today: Ethereum Foundation's ETH Sales Ignite Debate: Liquidity Needs vs. Price Stability

The Ethereum Foundation executed a significant offloading of 2,795 ETH, valued at approximately $12.7 million, during a period of strong price momentum for the cryptocurrency. The sales occurred as Ethereum (ETH) surged past $4,500, a multi-year high, with the foundation's wallet "0xF39...E4B" selling 1,695 ETH for 7.72 million DAI at $4,556 and an additional 1,100 ETH at $4,602, totaling 2,795 ETHEthereum Foundation Resumes ETH Selling Amid Price Rally^[4]. This activity marked the foundation's first major ETH transaction since releasing its 2024 financial report, which disclosed a treasury of $970.2 million, with over 99% of its crypto holdings in ETH.

The sale aligns with the Ethereum Foundation's broader strategy of converting ETH into stable assets to fund operational expenses, including grants for developers, privacy-enhancing technologies like zero-knowledge (ZK) protocols, and global ecosystem events. Co-founder Vitalik Buterin emphasized that such sales are part of a deliberate financial planning approach, ensuring the foundation can sustain its role in advancing Ethereum's infrastructure. The foundation has sold over 4,266 ETH in 2024 alone, with proceeds reinvested into initiatives that bolster the blockchain's scalability and security.

Ethereum's price surge to $4,579 was driven by robust institutional demand, with corporate treasuries accumulating nearly $9 billion in ETH. This influx included companies like SharpLink Gaming and Bitmine, which have positioned ETH as a strategic reserve assetEthereum Foundation Resumes ETH Selling Amid Price Rally^[4]. Additionally, spot Ethereum ETFs recorded record inflows of $1.02 billion in a single day, reflecting growing institutional adoption. The foundation's sales, while notable, have not significantly damped market enthusiasm, as the price continued to climb despite the offloading.

Historical analysis of Ethereum Foundation (EF) sales reveals mixed short-term impacts on ETH's price. On-chain data indicates that the average 7-day price change following a sale is +1.3%, with less than half of EF transactions resulting in immediate declines. For example, a 2021 sale led to a -41.1% drop, while a 2018 transaction coincided with a +37.7% rally. Over 30 days, the average price change post-sale settles at +8.9%, suggesting that any initial volatility tends to normalize as broader market forces take precedence.

The foundation's strategy has drawn scrutiny from some community members, who question whether selling ETH undermines long-term price stability. However, the foundation maintains that its approach balances liquidity needs with ecosystem sustainability. For instance, the November 2025 sale of 100 ETH for 334,315.7 DAI was described as a routine transaction to manage operational cash flow. The foundation's remaining ETH holdings-approximately 99.9 ETH in the "0xF39...E4B" wallet-indicate a continued commitment to Ethereum's development, with funds allocated to critical research and infrastructure projectsEthereum Foundation Resumes ETH Selling Amid Price Rally^[4].

Looking ahead, the Ethereum Foundation's sales are unlikely to disrupt the cryptocurrency's bullish trajectory. Institutional confidence, driven by ETF inflows and corporate adoption, has reinforced Ethereum's role as a cornerstone of decentralized finance (DeFi) and smart contract innovationEthereum Foundation Resumes ETH Selling Amid Price Rally^[4]. While the foundation's offloading may introduce short-term volatility, the broader market dynamics-led by layer-2 scaling solutions and growing institutional interest-suggest sustained momentum. As the foundation continues to navigate its financial strategy, transparency and adherence to its ecosystem-building mission will remain key to maintaining market trust.