Ethereum Price Dips 7% As Ethereum Foundation Sells: What to Expect?

Ethereum (ETH) price has experienced a sharp decline, dropping 7% in the past 24 hours.

The price dip coincided with the Ethereum Foundation selling 100 ETH at an average price of $3,078.93, exchanging it for 307,893 DAI, according to on-chain data from Onchain Lens. This sale marks the third instance in 2025, bringing the total ETH sold by the Foundation this year to 300 ETH.

Ethereum Price Decline and Market Activity

At the time of writing, Ethereum price is trading at $3,062.24, a fall from the previous day’s high of $3,309.

The daily trading volume rose by 135.04%, standing at $29.83 billion, which shows increased activity during the selloff. This increase in trading volume indicates that traders were quick to the change in price and may have either closed their trades or looked for buying opportunities.

Market capitalization also fell to $369.03 billion from the previous day’s $396.89 billion, declining by 7.45%. It comes as broader market sentiment remains bearish, with Ethereum struggling to stay above the key $3,000 per coin level.

The price of Ethereum has been trading within a descending wedge since December with declining resistance and ascending support. This pattern indicates a possible break out or break down of ETH when it reaches the squeeze zone.

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Present support is at $3,000 a pretty important level. If broken, Ethereum could extend losses and may probably retest the $2,913 level. As of now, the ETH price is trading at $2,030, and the first resistance level is at $3,200 which ETH needs to break to resume bulls.

But liquidations across the crypto market have hit over $850m – particularly from longs – and bearish sentiment persists.

Ethereum Foundation’s ETH Sale and its Implications

The Ethereum Foundation’s hard sell of 100 ETH has attracted attention, especially after co-founder Vitalik Buterin talked about other sources of income. In an earlier interview, Buterin suggested considering staking or DeFi income instead of selling ETH. The Foundation’s further sales lead to certain speculations about the strategy and impact on short-term price fluctuations.

They are not uncommon and are frequently observed during temporary market lows, when traders pay attention to large trades. Although the Foundation’s sale could have influenced the latest price trend, it is not the only factor affecting Ethereum price.

Staking Growth Highlights Long-Term Optimism

There have been minor hurdles along the way but the long term investors seem to be increasingly gaining confidence as suggested by on-chain data. The staking of Ethereum was on the rise according to data from IntoTheBlock. The number of addresses participating as depositors in staking contracts was 211,720, while a year ago, it was 152,230 addresses.

Also, the overall number of ETH deposited to the staking contract increased to a record 56.38 million ETH, which demonstrates high engagement in staking services. These developments can be taken to mean that investors are still bullish on Ethereum even if there is short term price fluctuation.

The number of Ethereum addresses has also increased, which shows that there is long term confidence in the asset. HODLer addresses also rose from 91.18 million in October to 96.98 million in December. The increase in the trader and cruiser metrics indicates that both long-term holders and short-term speculators are still using ETH while the market remains volatile.