Ethereum Foundation Sells ETH, But ETFs Sell 87x More

The Headlines vs. The Real Selling Pressure

Have you noticed headlines about the EthereumETH-1.33% Foundation moving cryptocurrency around lately? Whenever a wallet tied to Ethereum creators sells coins, traders naturally pay close attention.

On Friday, an Ethereum Foundation-linked wallet sold another 2,000 Ether (ETH). This sale was worth approximately $3.87 million.

Social media quickly filled with concerns about market pressure. However, looking at the bigger picture reveals a very different reality.

The actual heavyweight selling pressure isn't coming from the Foundation. It is coming from institutional investors trading US spot Ethereum exchange-traded funds (ETFs).

Inside the Ethereum Foundation Wallet Sales

Let's first break down the recent activity from the Foundation-linked wallet. On-chain analytics platform Lookonchain flagged the transactions on social media platform X.

The transactions came from wallet address 0x5CBC. The wallet executed two separate orders of 1,000 ETH each using CoW Swap, placed just minutes apart.

This move is part of a regular pattern starting late last month. Here is how the wallet's recent sales break down:

• October 26: The wallet sold 2,785 ETH, valued at roughly $6.42 million.
• Earlier this week: It sold two separate batches of 1,000 ETH.
• Friday (November 13): It sold another 2,000 ETH worth $3.87 million.

In total, this wallet has unloaded 6,785 ETH since October 26. During November alone, it sold 4,000 ETH worth about $8.03 million based on Lookonchain figures.

Following these transactions, the wallet still holds around 11,000 ETH. That remaining balance is worth roughly $21.3 million at current market prices.

Tracking Price Performance After Sales

Crypto observers watch these transactions because they often coincide with market pullbacks. Lookonchain highlighted several dates where wallet sales matched price drops:

• October 12: ETH price dropped by 9%.
• October 26: ETH price fell by 7.7%.
• November 10: ETH price decreased by 10.4%.
• Friday (November 13): Marked the fourth sale in this series.

While these correlations grab attention, crypto assets remain inherently volatile. Broader macroeconomic trends and institutional capital movements often exert far greater influence.

The Real Giant: US Spot Ethereum ETFs

While $8.03 million in monthly sales sounds significant, it pales in comparison to institutional capital movements.

Data from SoSoValue shows that US spot Ethereum ETFs recorded $695.9 million in net outflows during November so far.

Comparing the two numbers reveals that institutional ETF outflows are roughly 87 times larger than the Foundation wallet's November sales.

Persistent Outflows Drag Down Total Net Assets

Institutional redemptions have been steady rather than a single event. Market reports highlight six consecutive weeks of net outflows from these financial products.

In November, Ethereum spot ETFs experienced net outflows in 7 out of 8 trading sessions.

As a result, total net assets managed by these funds saw a notable drop:

• October 30: Total net assets stood at $13.22 billion.
• November 11: Total net assets fell to $11.65 billion.

This sharp decrease in fund assets demonstrates where the primary market supply is actually coming from.

Ethereum Price Tests Key Support Levels

Combination of ETF outflows and broader selling has put downside pressure on ETH trading levels.

According to market data, ETH was trading around $1,939, down 5.17% over a 24-hour window.

The last time ETH traded at this level was around August 18, when it closed at $1,917.85. Following that low, ETH broke out of its summer range and surged past $2,500 within a week.

Technical Analysis View and Scenarios

Market analyst "More Crypto Online" noted on X that the sharp decline has not yet confirmed a price bottom.

From a technical perspective, ETH has reached a Fibonacci support zone around $1,920.51, with $1,832.78 acting as the next potential downside level.

Here is how potential market developments could unfold based on key conditions:

• Stabilization Scenario: If ETF outflows slow down and buyer demand returns, holding the $1,920.51 support level could allow ETH to form a temporary price base.
• Extended Downside Scenario: If institutional ETF selling continues or wider crypto market weakness persists, ETH could break below $1,920.51 and test the $1,832.78 support region.
• Volatile Risk Reminder: Technical support levels are informational landmarks, not guarantees, and can break quickly during volatile trading periods.

Past performance of digital assets is not an indication or guarantee of future performance. You can monitor real-time market prices on Bitkub ETH Market.

What Should Investors Watch Going Forward?

With roughly 11,000 ETH left in the Foundation-linked wallet, additional transfers remain possible down the road.

However, tracking individual wallet transactions tells only a small part of the story.

For anyone watching ETH market dynamics near the $1,920 support level, institutional ETF inflow and outflow metrics remain the far larger force to watch.