Ethereum News Today: Ethereum Foundation, Whales and Hackers Sell $500M in ETH Amid Volatility

Large-scale Ethereum (ETH) selling activity over the past two weeks has sparked concerns over liquidity and market stability, as over $500 million in ETH was moved by key players, including the Ethereum Foundation, whale investors, and hackers. On-chain data reveals that the Ethereum Foundation sold approximately 6,194 ETH, amounting to $28.36 million, while whale wallets offloaded $242.34 million in ETH to centralized exchanges [1][6]. These transactions, occurring amid heightened volatility, signal a significant shift in market dynamics and raise questions about the motivations behind such a massive liquidity event [1].

The sell-off coincided with a sharp decline in Ethereum’s net taker volume, which dropped to -$418.8 million on August 6, 2025. This level of negative volume is rare and suggests a strategic move by large holders to offload assets during a period of uncertainty or portfolio repositioning [3]. In addition, the Ethereum ETF flows reflected mixed signals, with initial outflows followed by a $73 million reversal, indicating a partial return of institutional confidence [2].

Despite the selling pressure, some investors are shifting their focus from speculative trading to long-term value capture, as evidenced by rising staking inflows. This trend suggests a broader repositioning of Ethereum holdings from speculative trading to yield-generating strategies [4]. However, the timing and scale of the Ethereum Foundation’s own sell-off have drawn attention, with some analysts questioning its potential impact on the network’s governance and market perception [6].

Hackers have also played a role in the sell-off, as stolen ETH was rapidly liquidated, further exacerbating the downward price pressure. The presence of illicit actors adds complexity to the market’s interpretation of these movements, making it difficult to assess whether the sell-off stems from strategic positioning, risk mitigation, or malicious activity [5].

The Ethereum Foundation has defended the move, stating that the sales were conducted to maintain neutrality and reduce exposure to staking-related risks, particularly during contentious network upgrades. Vitalik Buterin, co-founder of Ethereum, emphasized that such actions help preserve the foundation’s impartiality and long-term vision [6].

Analysts remain divided on the broader implications of the sell-off. While some view it as a temporary correction following a period of consolidation, others warn of potential structural challenges, especially if the selling pressure continues. The Ethereum ecosystem now faces a critical test of its resilience, as it attempts to absorb large-scale capital outflows without triggering a broader crisis [6]. Institutional players, including BlackRock, have continued to increase their ETH exposure, signaling underlying confidence in the asset’s long-term fundamentals [6].

[1] Ethereum news today: Ethereum Faces $500M Sell-Whales, Hackers, Foundation Offload Holdings (https://www.ainvest.com/news/ethereum-news-today-ethereum-faces-500m-sell-whales-hackers-foundation-offload-holdings-2508/)

[2] ETH Sell-Off? Whales Move $69M as Taker Volume Plunges (https://cryptorank.io/news/feed/ca821-eth-sell-off-whales-move-69m-as-taker-volume-plunges)

[4] BVOX TOP Crypto Exchange | FanClub (https://x.com/TokenCryptoSpot/status/1956426575857037758)

[5] XT Community News (https://www.xt.com/en/blog/community-news/2025-08-15T19:18:26.000Z)

[6] Ethereum Foundation, Whales, and Hackers: What’s Driving the ETH Sell-Off? (https://cryptopotato.com/ethereum-foundation-whales-and-hackers-whats-driving-the-eth-sell-off/)