Ethereum Foundation Faces Backlash After Selling 100 ETH

The Ethereum Foundation’s recent sale of 100 ETH has stirred up fresh concerns in the crypto market, contributing to a 7% drop in Ethereum's price over the past 24 hours.

This development comes amid an already volatile market environment, with investors bracing for the Federal Reserve’s upcoming FOMC meeting and broader economic uncertainty.

Data from Spotonchain reveals the Foundation exchanged 100 ETH for 307,893 DAI on January 27, prompting criticism from the crypto community. Although such sales are part of the Foundation’s funding strategy for network development, they have sparked unease among traders, particularly as the market faces heightened pressure. Records show the organization has offloaded 300 ETH this year, raising concerns about its impact on Ethereum’s price stability.

Adding to the turbulence, the rise of Chinese AI startup DeepSeek has disrupted markets, unsettling crypto and tech sectors alike. As Bitcoin, XRP, and other major tokens trade in the red, Ethereum has followed suit, now hovering around $3,066.

Despite the current downturn, analysts are cautiously optimistic. Some suggest that halting large-scale ETH sales could allow for a price rebound to $4,000 or higher, supported by increased whale accumulation. Historical data further bolsters this sentiment, with February often proving favorable for Ethereum’s performance. While uncertainty persists, the coming weeks could offer critical insights into whether Ethereum can regain momentum.