{"id":22397,"date":"2025-03-25T15:23:46","date_gmt":"2025-03-25T13:23:46","guid":{"rendered":"https:\/\/forklog.com\/en\/ethereum-foundations-sales-impact-on-eth-price-assessed-by-experts\/"},"modified":"2025-03-25T15:23:46","modified_gmt":"2025-03-25T13:23:46","slug":"ethereum-foundations-sales-impact-on-eth-price-assessed-by-experts","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ethereum-foundations-sales-impact-on-eth-price-assessed-by-experts\/","title":{"rendered":"Ethereum Foundation&#8217;s Sales: Impact on ETH Price Assessed by Experts"},"content":{"rendered":"<p>Sales of ether by the Ethereum Foundation (EF) prompt an immediate market reaction. On average, the price increases by 1.3% over the following seven days, according to CoinGecko analysts.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Does Ethereum Foundation&#8217;s (EF) sell-offs trigger any significant market movements? ?<\/p>\n<p>Our latest study reveals that EF sell-offs of <9K <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> have no significant positive correlation to price changes. <a href=\"https:\/\/t.co\/TgY2fcZwfy\">pic.twitter.com\/TgY2fcZwfy<\/a><\/p>\n<p>\u2014 CoinGecko (@coingecko) <a href=\"https:\/\/twitter.com\/coingecko\/status\/1904428050399518951?ref_src=twsrc%5Etfw\">March 25, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In 149 instances (47.6%) during this period, a price decline was observed, while in 164 cases (52.4%), there was an increase.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe results show that less than half of EF&#8217;s sell-offs lead to an immediate price drop. In most cases, this does not occur,\u201d emphasized CoinGecko experts.<\/p>\n<\/blockquote>\n<p>Among the most extreme cases, they noted a 41.1% drop in quotes over a week following the sale of 35,053 ETH on May 17, 2021. Conversely, after the sale of 70,000 ETH on June 1, 2018, there was a pump of +29.4% over three days and +37.7% over seven days.<\/p>\n<p>According to analysts, some correlations over the weekly period appear to reflect the short-term impact of large sales by EF. However, the effect remains inconsistent, as \u201cother market forces likely play a more dominant role in determining price movement.\u201d<\/p>\n<h2 class=\"wp-block-heading\">External Factors Have Greater Influence on Price<\/h2>\n<p>Over 30-day periods, the average change in quotes after EF sales is +8.9%. This demonstrates that any initial volatility is often smoothed out as the market recovers, noted CoinGecko specialists.<\/p>\n<p>In the early stages (before 2020), the dynamics of quotes over a month after EF expenditures were predominantly positive. Analysts suggest this reflected growing confidence in the ecosystem, especially in bear markets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cHowever, since 2021, the correlation has increasingly leaned towards neutral or negative values. This shift likely reflects the maturity of Ethereum and the influence of larger macroeconomic forces,\u201d the experts stated.<\/p>\n<\/blockquote>\n<p>They found a greater connection between price movements and external factors such as Federal Reserve rate hikes, the rise in bitcoin dominance, or general crypto market cycles.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"528\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Gm3jO_PacAAstWD-1024x528.png\" alt=\"Gm3jO_PacAAstWD\" class=\"wp-image-254909\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Gm3jO_PacAAstWD-1024x528.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/Gm3jO_PacAAstWD-300x155.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/Gm3jO_PacAAstWD-768x396.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/Gm3jO_PacAAstWD.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Major EF sell-offs and price reactions over various timeframes. Data: CoinGecko.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEF sell-offs during the analyzed period show a contradictory relationship with ETH price movements, where notable transactions sometimes coincide with sharp rises or falls. Notable events, such as the sale of 100,600 ETH followed by an 84% surge, and the sale of 35,053 ETH leading to a 41% crash, highlight this volatility,\u201d concluded CoinGecko analysts.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Reforms in EF May Reduce Asset Sell-offs<\/h2>\n<p>The foundation behind Ethereum&#8217;s development has repeatedly <a href=\"https:\/\/forklog.com\/en\/news\/vitalik-buterin-defends-ethereum-foundations-cryptocurrency-sales\">faced criticism<\/a> for regular ETH sales. Concerns also addressed the transparency of EF&#8217;s financial activities. Users questioned why the organization does not stake its funds to generate income.<\/p>\n<p>In January, the organization <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-foundation-allocates-50000-eth-for-defi-participation\">opened<\/a> a multisig wallet on the Safe platform to participate in the DeFi ecosystem. In February, EF <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-foundation-allocates-120-million-to-defi-protocols\">sent<\/a> $120 million worth of ETH to Aave, Spark, and Compound protocols.<\/p>\n<p>This occurred amid a <a href=\"https:\/\/forklog.com\/en\/news\/leadership-changes-announced-at-ethereum-foundation\">change in the foundation&#8217;s leadership<\/a>\u2014Xiao-Wei Wang and Tomasz Stanczak became co-executive directors, replacing Aya Miyaguchi as CEO.<\/p>\n<p>Experts noted a <a href=\"https:\/\/forklog.com\/en\/news\/ethereum-sentiment-reaches-yearly-low-amid-market-stabilization\">decline in the optimism index<\/a> regarding Ethereum to a yearly low. Analysts at Standard Chartered <a href=\"https:\/\/forklog.com\/en\/news\/standard-chartered-lowers-ethereum-price-forecast-to-4000\">revised their price forecast<\/a> for the cryptocurrency in 2025, lowering it from $10,000 to $4,000.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sales of ether by the Ethereum Foundation (EF) prompt an immediate market reaction. On average, the price increases by 1.3% over the following seven days, according to CoinGecko analysts. Does Ethereum Foundation&#8217;s (EF) sell-offs trigger any significant market movements? ? Our latest study reveals that EF sell-offs of<\/p>\n","protected":false},"author":1,"featured_media":22396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1098,46,1150,167],"class_list":["post-22397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coingecko","tag-ethereum","tag-news-plus","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"61","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=22397"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/22396"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=22397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=22397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=22397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}