Ethereum (ETH) has climbed more than 10% in April, briefly reaching a monthly high of around $2,430, supported by renewed market optimism and steady institutional demand. However, the rally has coincided with continued ETH sales from the Ethereum Foundation, sparking debate over treasury management and market impact.
The foundation has sold approximately 20,000 ETH in 2026, generating more than $45 million in proceeds. Recent transactions include a 5,000 ETH sale for roughly $11 million in DAI, followed by a larger 10,000 ETH over-the-counter sale to investor Tom Lee’s Bitmine at an average price of about $2,387, raising nearly $23.9 million.
Ethereum Foundation Treasury Strategy Focused on Long-Term Funding
The Ethereum Foundation operates under a structured treasury policy introduced in mid-2025, maintaining reserves equivalent to roughly 2.5 years of operating expenses. ETH sales are used to fund protocol development, ecosystem grants, and research initiatives rather than reflecting market timing decisions.
According to on-chain data, the foundation still holds about 92,500 ETH in liquid reserves and an additional 53,000 ETH staked, which generates estimated annual yield of 2.7%–3.8%, potentially reducing future reliance on ETH sales.
Market Demand and Technical Signals Point to Mixed Outlook
Despite concerns over selling pressure, Ethereum’s market structure remains supported by strong institutional participation. Spot Ethereum exchange-traded funds have recorded over $2 billion in inflows since early April, while accumulation wallet activity continues to outpace exchange deposits.
However, technical analysis shows ETH forming a rising wedge pattern, a structure that often precedes bearish reversals. If confirmed, downside projections suggest a potential decline toward $1,950, representing a possible correction of more than 15% from recent highs.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.