Ethereum Under Fire: Foundation Dumps but Bulls Charge Back Harder
Ethereum's foundation wallets just triggered sell alarms—yet the market refuses to kneel. Here's why ETH loyalists are buying the dip like it's a Black Friday deal.
### The Great ETH Paradox: Sell-Off Meets Diamond Hands
When the Ethereum Foundation moves coins, traders usually brace for impact. This time? A shrug. Open interest in ETH perpetual swaps hit a 3-month high as derivatives traders doubled down on long positions—proof that crypto's 'buy the rumor, sell the news' playbook got tossed.
### Institutional Whales vs. Retail FOMO
Blockchain sleuths spotted 15K ETH hitting exchanges from foundation addresses. Cue the panic—except decentralized exchange volumes spiked 40% immediately after. Retail traders apparently decided 'foundation selling' is just institutional weakness leaving the chat.
### The Cynic's Corner
Meanwhile, Wall Street analysts—who still think Proof-of-Stake is a coffee brand—issued downgrades. Because nothing says 'market insight' like being late to every crypto trend since Mt. Gox.
Bottom line: Ethereum's price action looks less like a capitulation and more like a coiled spring. The foundation's sell-off became the ultimate stress test—and so far, ETH's passing with flying colors.
Market Drivers Fuel Volatility
The selloff coincided with hot U.S. inflation data. July’s PPI ROSE 3.3% YoY, which reduced expectations of Federal Reserve rate cuts. Additionally, Treasury Secretary remarks confirmed no immediate plans for BTC or ETH purchases in U.S. strategic reserves. These factors combined with Foundation-linked sales created fresh waves of uncertainty in Ethereum’s short-term outlook.
Besides that, institutions showed resilience as reported by crypto Patel on X. SharpLink Gaming added 130,000 ETH, lifting its total to 728,804 ETH ($3.38B). Bitmine also bought 28,650 ETH (~$130M), raising its total stash to 1.17M ETH ($5.1B). Consequently, strong institutional demand helped balance panic selling from retail traders.
Technical Setups Resemble 2017 Rally
On the technical front, cryptocurrency expert Ether Wizz points out that Ethereum’s current pricing pattern resembles what happened during its big jump in 2017. Back then, before it broke through its 50-week SMA and started to rise, ETH consolidated for a short period.
People are panic selling $ETH now.
They are making the same mistake which they did with $BTC.
Just like BTC, ETH now has some big buyers who are ready to buy at any price.
Maybe we can see 5%-10% correction, but thinking that ETH has topped is a crime.$10K ETH is coming this… pic.twitter.com/1HS27rUVPP
The situation appears to be similar in 2025, as prices once more find support above the moving average. According to him, ETH will reach $10,000 this cycle and may yet rise.
The recent activity in wallets associated with the Ethereum Foundation is putting short-term pressure on the market. While ETH is still quite a distance from its previous highs, the technical indicators and growing institutional interest suggest potential for a rebound. “It is a crime to believe that ETH has topped,” observes expert Ether Wizz.
Also Read: Bitcoin, Ethereum, & xrp price Prediction: Key Levels to Watch in Coming Week
