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Ethereum (ETH) Price at Crucial Crossroads amid Low Demand from Institutional Investors
01/08/2025 21:07
The Ethereum Foundation has continued to make strategic R&D by selling its Ether holding for stablecoins amounting to over $12M in 2024.
Key Notes
- Ethereum’s supply on CEXes increases by nearly 500k in the last 24 hours led by sales from spot Ether ETFs.
- A rebound for Ethereum in the near term will kickstart the next bullish phase for the much-anticipated altseason.
As Bitcoin price BTC $95 251 24h volatility: 5.3% Market cap: $1.89 T Vol. 24h: $71.74 B led the altcoin industry in a sudden selloff in the past 24 hours resulting in over $698 million of leveraged liquidations, Ethereum price ETH $3 355 24h volatility: 7.6% Market cap: $404.15 B Vol. 24h: $40.95 B declined over 7% to trade at about $3,353 on Wednesday, during the early New York session. As a result, the large-cap altcoin, with a fully diluted valuation of about $404 billion and a 24-hour average traded volume of around $40.4 billion, has been retesting a crucial support/resistance level, which will decide its near-term fate.
In the daily time frame, Ethereum price has been forming a potential reversal pattern, characterized by a possible head and shoulders (H&S) formation coupled with a bearish divergence on the Relative Strength Index (RSI). Furthermore, Ether’s price has closed below the 50-day Moving Average (MA) in the past two days, signaling the bears are in control.
In case of further bearish sentiment, Ether price is likely to retest the support level around $3,100, before kickstarting the next bullish cycle. However, a possible rebound from the current support level could propel Ether’s price towards its all-time high (ATH).
The upcoming second inauguration of US President-elect Donald Trump will have a notable impact on the crypto industry, amid heightened volatility. On one hand, the inauguration of Donald Trump could easily turn into a sell-the-news event. On the other hand, the inauguration could be viewed as a bullish event as the political situation in the country shifts to pro-crypto.
Ethereum Foundation Leads Whales Selloff
The Ethereum Foundation, a Switzerland-based non-profit organization dedicated to the research and development of the Ethereum network, has made its first notable sales in 2025. After selling 4,466 ETH for about $12.61 million in 2024, the Ethereum Foundation has continued to reduce its Ether holdings.
According to on-chain data analysis provided by Spot On Chain, the Ethereum Foundation holds digital assets worth about $915 million at the time of this writing. The Ethereum Foundation majorly holds Ether and Wrapped Ether (WETH) among other digital assets, but has concentrated on selling more ETH.
The ongoing sales by the Ethereum Foundation have coincided with low demand from institutional investors. While the supply of Bitcoin on centralized exchanges has gradually declined in the past few months to multi-year lows, the supply of Ethereum on different CEXes has remained unchanged in the past year despite the approval of US spot Ether ETFs.
On Tuesday, none of the US spot Ether ETFs registered a net cash inflow, but reported a total net outflow of about $86.79 million. As a result, the cumulative total net inflow of the US spot Ether ETHs stands at about $2.68 billion, and the total net assets at around $12.28 billion.
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