Ethereum Price Falls After Foundation Transfers $654 Million in ETH

The price of Ethereum fell a fraction of a percent over the past 24 hours to trade at $3,858.54 as of 4 a.m. EST, a 36% increase in trading volume to $49.69 billion.

This came amid controversy within the ETH ecosystem, with the Ethereum Foundation moving more than $654 million worth of ETH into a wallet typically used for large-scale sales, sparking concerns about dumping that could impact the market.

THE ETHEREUM FOUNDATION JUST TRANSFERRED $650 MILLION $ETH

The Ethereum Foundation just transferred $654 million worth of ETH to a wallet used for selling in the past.

This wallet has only made significant transfers to:
Kraken Depot
SharpLink Games
A Multisig that sells ETH pic.twitter.com/hqdQINzx0P

-Arkham (@arkham) October 21, 2025

This sudden transfer is significantly larger than previous founding moves and comes at a time when investors are already worried.

A much smaller ETH selloff last month barely moved the market, but this time traders are bracing for a bigger potential impact. The fear is that if a large amount of ETH is sold quickly, the price could break through important support levels, encouraging more selling and leading to losses on other coins linked to Ethereum’s performance.

The latest actions have also reignited discussions about the future of Ethereum’s leadership and who controls major decisions.

Ethereum Price: On-Chain Signals Show Red Flags

On-chain data for ETH in October indicates declining confidence among large holders and whales. Top holders in the 1,000-10,000 ETH bracket reduced their positions by 8.38% this week. Those with between 10,000 and 100,000 ETH added a bit more, but overall the whales appear cautious.

Foreign exchange reserves fell more than 2%, indicating that holders are withdrawing coins from exchanges, perhaps to avoid panic selling or to hold them for the long term.​

ETH exchange reserve Source: CyptoQuant

ETH staking flows also plummeted, with new coins staked dropping by over 95% compared to last week. This shows that fewer investors are locking up coins for additional rewards, a sign that confidence in near-term price growth is low.

Even though the network saw an increase in daily transactions and more coins moved between wallets, most activity seemed focused on selling rather than new purchases.​

Liquidations were high, with more than $1.77 billion in long positions and $824 million in short positions wiped out after the Foundation’s announcement. This shows that traders were spooked and rushed to close their positions before ETH could fall further.​

Ethereum Price Prediction

Based on the weekly chart, ETH price is now at $3,861, down this session after failing to hold previous highs near $4,957. The price ran out of steam after a strong rally, and now buyers are defending the 50-week SMA around $3,123.

If ETH continues to decline, the 200-week SMA at $2,446 is the next important support where dip buyers will likely step in.

Resistance lies near $4,937, just above the last high before the sell-off began. The market is now below this point and struggling near previous support zones.

ETHUSD analysis source: Tradingview

The RSI is at 53.21, barely above the midpoint, showing that there is not yet strong buying energy, but also that there is not yet a deep oversold level. The MACD has turned bearish, with the MACD line moving below the signal line and moving into negative territory. This indicates that sellers have taken control for the moment.​

ETH has started to make lower highs, indicating that the rally is losing steam and buyers are losing control. As long as the price remains above the $3,123 support, there is a chance of rebounding towards $4,000 in the coming weeks.

If price falls below the 200-week SMA at $2,446, Ethereum could retest lower levels near $883, where previous buyers appeared.​

A bullish reversal is possible if positive updates arrive or major buyers show up at key support zones.

For now, the ETH price is stuck in a fragile zone, under downward pressure from market uncertainty and fears over the Ethereum Foundation.

Related articles:

Best Wallet – Diversify your crypto portfolio

• Easy-to-use, feature-driven crypto wallet
• Get Early Access to Upcoming Token ICOs
• Multi-chain, multi-wallet, non-custodial
• Now on App Store, Google Play
• Stake to win a $BEST native token
• More than 250,000 active users per month