Ethereum, the second-largest cryptocurrency by market capitalization, has surged past the critical $3,000 resistance level, marking a significant recovery in price performance. The notable upward movement coincides closely with reports of the Ethereum Foundation transferring approximately 21,000 ETH - worth around $62.8 million - over the past two months, fueling both optimism and controversy within the crypto community.
On July 11, Ethereum reached a fresh recent high of $3,019 at around 06:30 AM UTC, surpassing the crucial $3,000 level for the first time since early February. This recent rally has brought renewed optimism to Ethereum investors after a prolonged bearish phase that persisted for several months, stretching from February into early July.
Although Ethereum faced a slight correction shortly after hitting this recent peak - briefly retreating to approximately $2,990 - it remained resilient around the $3,000 mark. At the time of writing, ETH is trading at approximately $2,987, representing a robust 6.6% increase over the last 24 hours. Moreover, Ethereum has witnessed impressive growth of around 16.8% in the past week and nearly 22% over the past two weeks, underscoring strong market sentiment.
This remarkable rally has been accompanied by significantly heightened trading activity. According to crypto data analytics firm crypto.news, Ethereum’s daily trading volume has surged by roughly 62.9% compared to the previous trading day, highlighting renewed investor enthusiasm and robust market participation. The uptick in trading volume underscores growing confidence in Ethereum’s near-term price performance among both retail and institutional investors.
Ethereum Foundation’s Recent ETH Transfers Stir Market Speculation
Concurrently with Ethereum’s bullish price movement, the Ethereum Foundation has drawn attention due to significant recent transfers of ETH. According to blockchain security and monitoring firm PeckShield, the EF has moved a substantial total of 21,000 ETH, approximately $62.8 million, from its main treasury to an internal address managed via a Gnosis Safe Proxy over the last two months.
In further chain activity, approximately one-third of this transferred amount - about 7,000 ETH valued at $20.9 million - was moved onward to another address. Notably, this address recently swapped around 1,210 ETH for approximately $3.5 million worth of the stablecoin USDC within the last 24 hours.
These movements quickly became a point of contention and speculation among traders and community members, many of whom interpreted the transfers as an indication of potential selling pressure originating from the Ethereum Foundation itself.
Community sentiment around the Ethereum Foundation’s actions has been sharply divided. Some traders expressed immediate concern, accusing the Foundation of "dumping" ETH, which they feared could negatively impact Ethereum's market stability and investor confidence.
However, other prominent voices within the crypto community swiftly came to the Ethereum Foundation's defense, pointing out these transfers as part of an updated treasury management strategy rather than indiscriminate selling.
Notably, a popular crypto analyst and trader, known by the handle @digitalartchick, pushed back against the negative sentiment, tweeting: “A lot of FUD going on right now about the Ethereum Foundation selling ETH, don’t believe it! The Ethereum Foundation uses its 200K ETH treasury to participate in DeFi and generate yield. They do not sell ETH anymore since the leadership change this year.”
Ethereum Foundation’s New Treasury Strategy
Earlier in June, the Ethereum Foundation publicly outlined a revised treasury strategy that included more structured and transparent ETH sales. These periodic sales are designed to maintain sufficient fiat currency reserves for operational stability and future development funding, while simultaneously expanding the Foundation's engagement in decentralized finance (DeFi) protocols and staking activities.
The Foundation emphasized that these strategic sales and reallocations are part of responsible treasury management practices aimed at ensuring long-term operational sustainability, rather than short-term market moves.
Ethereum’s recent price action and the Ethereum Foundation’s treasury management moves coincide with heightened institutional interest in ETH. Prominent institutions such as BlackRock, SharpLink Gaming, and Bit Digital have recently increased their ETH exposure significantly. Notably, BlackRock now owns approximately 1.5% of all Ethereum currently in circulation, highlighting Ethereum’s growing institutional acceptance.
SharpLink Gaming notably became the first publicly traded entity to adopt Ethereum explicitly as a treasury reserve asset, holding more than 176,271 ETH valued at around $490 million. Meanwhile, Bit Digital notably shifted its entire cryptocurrency treasury from Bitcoin to Ethereum, indicating strong institutional confidence in ETH’s potential for value appreciation and utility.
Analysts Predict Continued Volatility Amidst Positive Momentum
While Ethereum’s bullish breakout has sparked optimism, market analysts remain cautious, emphasizing potential volatility driven by broader market conditions and macroeconomic factors. Although institutional demand remains robust, Ethereum’s price action still faces challenges in sustaining momentum beyond key resistance levels.
The interplay between institutional accumulation, Ethereum Foundation activities, and market sentiment could significantly influence Ethereum’s price stability and volatility in the short to medium term. Analysts advise investors to monitor these dynamics closely, especially movements from significant market participants such as institutional investors and the Ethereum Foundation itself.
With Ethereum now surpassing $3,000 and experiencing heightened trading volumes, investors will closely watch whether it can sustain this bullish momentum. The ongoing strategic adjustments by the Ethereum Foundation, combined with substantial institutional buying, provide a robust backdrop for Ethereum’s future price performance.
However, traders should remain alert for signs of increased selling pressure or sudden shifts in broader market sentiment, particularly if the Ethereum Foundation initiates further significant treasury reallocations. The near-term trajectory for Ethereum remains compelling but uncertain, promising both opportunity and volatility for market participants.