The sale of 5,000 ETH by the Ethereum Foundation was part of a planned cash flow strategy and not a market exit. The plan was to convert a portion of its assets into stablecoins to fund R&D, grants and donations.
The process concluded with the final sale of 1,250 ETH, which generated $11.11 million in DAI at an average price of $2,221. The Foundation used TWAP execution to distribute orders over time, ensuring that supply enters the market gradually and without causing significant disruption.
This approach is important because it introduces supply in a controlled manner rather than triggering panic selling. This signals operational planning, not a loss of confidence.
However, the impact depends on market absorption. If demand remains stable, prices may remain firm; if it weakens, even measured sales could weigh on momentum.
Activity is growing, but the price of ETH is stagnating
After the 5,000 ETH sale was completed, the market focused on the strength of demand rather than supply. This was demonstrated by network activity as the number of transfers surpassed 1.3 million and approached all-time highs.
Such an increase shows that users are actively engaging with Ethereum through DeFi, stablecoins, and trading activities.
However, this increase introduces a clear tension. The price is holding near $2,200 instead of rising, showing that the activity is not yet translating into strong capital inflows. This trend suggests that much activity remains transactional rather than investment-focused.
As this dynamic develops, the implications become clearer. If the activity results in sustained purchases, the price may increase; otherwise, Ethereum can remain active while remaining range-bound.
ETH Absorbs Selling Pressure as Demand Strengthens
Following the structured sale, market behavior begins to confirm true absorption rather than passive stability. Spot CVD remained positive, showing clear buying pressure across major venues.
As this developed, the takers’ buy/sell ratio averaged 1.09, with peaks above 1.3 during intraday declines, signaling that buyers stepped in when selling peaked.
Meanwhile, exchange net flows show no increase in deposits, while ETH outflows increased sharply last week, indicating a reduction in selling pressure. As prices rose above $2,180, trading volume increased, but activity on the sell side remained low.
Finally, testing Ethereum’s growing activity requires strength; price maintenance confirms absorption and continued upside, while weakness turns supply into resistance and delays momentum.
Final summary
- Ethereum (ETH) is absorbing structured selling as TWAP execution limits disruption, while positive CVD and strong buy-side response signal demand resilience near $2,200.
- Ethereum activity exceeds 1.3 million transfers, but price remains range-bound, showing demand needs to strengthen further to maintain bullish momentum.
