Ether (ETH) has surged more than 10% in April, reaching as high as $2,430 this month amid renewed market optimism. Yet during the same period, the Ethereum Foundation — a nonprofit overseeing the Ethereum protocol's development — has continued making notable treasury sales.
In early April, the Foundation sold 5,000 ETH for roughly $11 million in DAI. This was followed by a larger 10,000 ETH over-the-counter sale to Tom Lee's Bitmine at an average price of $2,387, raising approximately $23.9 million.
In 2026 alone, the Foundation has sold approximately 20,000 ETH, raising over $45 million in total. It still holds around 92,500 ETH (approximately $215 million) in its liquid treasury, plus 53,000 ETH staked, according to data from Arkham Intelligence.
Why Is the Ethereum Foundation Selling ETH?
The sales are not reactions to price movements but follow a disciplined Treasury Policy adopted in June 2025. Under this policy, the Foundation maintains fiat and stablecoin reserves equal to roughly 2.5 years of operating expenses. Periodic ETH sales replenish these reserves to fund protocol development, research, grants, and broader ecosystem support.
The Foundation's 53,000 staked ETH may generate $4–$5 million in annual yield, assuming the current ETH price and an annual percentage yield of approximately 2.7%–3.8% gross remains about the same or higher in the future. This new income stream is expected to gradually reduce the Foundation's reliance on ETH sales to fund its operations.
Are the Ethereum Foundation's Sales Bearish for ETH?
The Foundation's ETH sales remain small relative to daily ETH trading volume. A typical 5,000–10,000 ETH sale represents just 0.08%–0.25% of Ethereum's average daily trading volume of $10–12 billion. This modest size means the market can comfortably absorb the Foundation's selling pressure with negligible impact.
On-chain data highlights robust underlying demand for ETH from large holders. The number of daily accumulation addresses — wallets steadily buying and holding Ether — rose to 2,434 this week, surpassing the number of exchange depositing addresses (wallets preparing to sell), which fell to 2,300.
Spot Ethereum ETFs have also recorded strong inflows for three consecutive weeks, attracting more than $2 billion in new capital since early April, according to data from SoSoValue. This sustained institutional buying signals growing demand for Ethereum investment products on Wall Street.
Ether's Rising Wedge Hints at a Potential 15% Dip Ahead
From a technical perspective, Ether is currently forming a rising wedge pattern — a structure defined by two ascending, converging trend lines accompanied by noticeably declining volume. In technical analysis, a rising wedge resolves when the price breaks below the lower trend line and falls by as much as the structure's maximum height.
Applying this rule to ETH's chart places its downside target at around $1,950, a decline of over 15%, by June — assuming the breakdown point is the wedge's apex at approximately $2,580, where the two trend lines converge.
Conversely, a break above the wedge's upper trendline may invalidate the bearish outlook. In that scenario, bulls may target the 200-day exponential moving average (200-day EMA) at around $2,630 as the next upside objective.
Meanwhile, ETH price could drop 15% or more in the coming days if the bearish reversal pattern playing out on its daily chart follows through to completion.
Why it matters
The Foundation's Treasury Policy, adopted in June 2025, ties ETH sales to a specific reserve target — roughly 2.5 years of operating expenses — meaning sales are rule-based rather than discretionary, which gives market participants a framework for anticipating future selling activity.
The 53,000 staked ETH represents a structural shift: if staking yield covers a meaningful share of operating costs, the volume of future ETH sales needed to maintain reserves could decline over time without any change in spending levels.
Spot Ethereum ETF inflows exceeding $2 billion over three consecutive weeks indicate that institutional demand is currently operating on a different scale and timeline than the Foundation's periodic treasury management sales.
