The Ethereum Foundation’s recent ETH sales and defense of these actions have sparked intense debate within the crypto community. Critics and supporters of Ether argue that these sales are stifling Ethereum’s price momentum and recovery while the rest of the crypto market shoots higher. ETH has been struggling to reclaim its 2021 all-time high of $4,870 and currently trades between $3,200 and $3,400. Investors question how the foundation’s actions might influence its future trajectory if they halt these sales. Could this decision trigger a rally? If so, how high can the Ethereum price go?
Impact of Ethereum Foundation’s ETH Sales on Ethereum Price
The Ethereum Foundation’s liquidation of 200 ETH for $672,000 this week has drawn sharp criticism and backlash from supporters. Investors believe these moves are counterproductive to the overall health of the ecosystem. Critics argue that selling ETH during market uncertainty, especially as Bitcoin surges past $109,000, weakens confidence and calls for an extended period of price stagnation. This outlook was exacerbated as a prominent Ethereum advocate, Josh Stark, defended the sales as routine operational expenses. With ETH price lagging 31% below its 2021 peak, the foundation’s actions are seen as a headwind to recovery.
the EF uses Ethereum all the time, for instance to (1) swap ETH for stables (usually @CoWSwap) and (2) to pay people (grantees, team members) in stables and ETH, on mainnet and L2s. Events we run (like Devcon and Devconnect) take onchain payments and use onchain ID for tickets.
— Josh Stark (@0xstark) January 20, 2025
Analysts highlight that repeated ETH sales increase market supply, potentially suppressing prices. For example, Spot On Chain reported that the foundation sold ETH at an average price of $3,361 in early 2025, coinciding with Ethereum’s failure to breach the $3,524 resistance level. This pattern has fueled speculation that reduced selling pressure from the foundation could stabilize ETH’s price and align it with broader market rallies.
How High Can Price Go if Ethereum Foundation Stops Selling ETH?
If the Ethereum Foundation stops selling ETH, analysts predict a bullish shift in market dynamics. Reduced supply from a major holder could alleviate downward pressure, allowing ETH to capitalize on improving fundamentals like declining volatility and rising network activity. Ethereum’s Network Value to Transaction (NVT) ratio, which recently hit a monthly low, signals balanced network value and transaction activity – a precursor to price recovery.
ETH NVT Ratio
Vitalik Buterin, Ethereum’s co-founder, acknowledged in 2024 that staking ETH instead of selling could generate yields, but regulatory uncertainties have hindered this approach. If the Foundation pivots from sales, it might also restore community trust and encourage long-term holding.
Technical analysis suggests that breaking the $3,400 resistance could trigger a 6% rally to $3,524, with further gains toward $3,720 if bullish momentum sustains.
Ethereum Price Forecast and Analysis Predicting Price Targets
Ethereum price forecasts for 2025 remain optimistic, with targets ranging from $3,737 to $5,925. These predictions are driven by upgrades like the Pectra hard fork and growing institutional adoption. Longer-term analyses project ETH could reach $26,536 by 2030, driven mainly by DeFi and Ethereum’s dominance in smart contracts sector.
Some key factors could have influenced a rally for ETH, but failed.
Supply Constraints: Staking and reduced ETH issuance post-Merge could tighten supply, boosting prices. So far, this hasn’t helped the prices as witnessed by Ethereum’s lackluster 2024 performance.
Layer-2 Solutions: Although the adoption of L2 solutions like Arbitrum and Optimism lower transaction fees, they have failed to attract investors due to Solana’s popularity.
Regulatory Clarity: This is the only reason that could help push Ethereum prices higher. Favorable regulatory policies could offset risks outlined by Vitalik Buterin and could encourage institutional inflows. The approval of a spot Ethereum ETF was the first step, and the election of a pro-crypto president was the second step. A pivot in the Ethereum Foundation’s strategy to manage operational expenses could help propel ETH higher.
ETH’s ability to surpass $3,500 hinges on reclaiming critical support levels and reversing negative sentiment.
Ethereum’s falling wedge pattern, as discussed in previous CoinGape articles, forecasts a potential dip into the $3,057 to $3,132 support levels. A bounce here seems highly likely and could trigger an upside move that breaks above the wedge’s upper trend line at roughly $3,375. A decisive breakout with a daily candlestick close will confirm that the Ethereum price is ready for a 17.67% move to $4,000.
ETH/USDT 1-day chart
To conclude, the Ethereum Foundation’s ETH sales have had a deep impact on the token’s price and its struggles. However, a strategic halt of swapping ETH for stables could catalyze a rebound with price forecasts targeting $4,000 to $6,000.
As the crypto market evolves, ETH price trajectory will continue to be influence and tightly linked to both the Ethereum Foundation’s internal decisions and broader crypto market trends. Will the Ethereum Foundation shift course and unlock ETH’s full value?
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