Ethereum Foundation continues sales and worries traders
The Ethereum Foundation continues to carry out large sales of ETH, which has raised concerns among traders. Recently, the foundation deposited 1,250 ETH on Bitstamp, which intensified fears that this move could put even more selling pressure on the asset.
These movements come at a delicate time for Ethereum, with the cryptocurrency's price facing a considerable drop throughout 2024.
The difficulties in the Ethereum ETF market also worsen the situation. Launched in July 2024 in the United States, Ethereum spot ETFs have recorded disappointing performance, with zero inflows as of October 7 and around $550 million in outflows since their launch.
By comparison, Bitcoin ETFs continue to attract strong demand, recording over $235 million in inflows on October 7 alone, with a total of $18.7 billion in inflows since the start of 2024.
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Traders closely watch the Ethereum Foundation's performance in the market, as its ETH sales can directly impact the price. Ethereum currently trades within a symmetrical triangle pattern, which indicates a critical moment for the cryptocurrency.
According to analysts, a decisive break above the $2,300 to $2,600 range could determine the next significant move in the market.
If the price drops below US$2,300, the cryptocurrency could undergo a further correction of up to 30%, reaching values close to US$1,600. On the other hand, a rally above $2,600 could pave the way for a recovery towards $6,000.
The foundation's continued sale of large amounts of ETH, combined with the underperformance of Ethereum ETFs and weak institutional and retail appetite, contributes to a scenario of uncertainty.
While Bitcoin remains relatively resilient, Ethereum struggles to sustain its value, which further worries traders who expected a more solid recovery from the second largest cryptocurrency by market value.
Another factor that aggravates uncertainties is the macroeconomic scenario. The recent 50 basis point interest rate reduction by the Federal Reserve in September brought some temporary relief to Ethereum and the altcoin market as a whole.
However, with the release of robust labor market data in the United States, the chances of a new interest rate cut in November have diminished, creating more obstacles for Ethereum's growth.