Ethereum Foundation Plans Significant ETH Conversion
The Ethereum Foundation has announced its intention to convert 10,000 ETH into fiat currency, amounting to approximately $43 million, over the course of this month. This development, shared via the Ethereum Foundation’s official channel on the social platform X, comes shortly after Ethereum achieved a record high of $4,946 on August 24. However, following this peak, Ethereum’s value has declined by 11.6%. This has sparked speculation about whether this recent high marks the zenith of the current cycle.
Ethereum Foundation’s Strategic ETH Sale
In the official announcement, the Ethereum Foundation outlined its plan to gradually convert 10,000 ETH into fiat currency through centralized exchanges in the coming weeks. With Ethereum’s current market price, this strategy implies a conversion of approximately $43.85 million worth of ETH. The Foundation intends to utilize the proceeds to finance research and development, community grants, and donations, aligning with its established treasury management policy. To minimize market disruption, the Foundation plans to execute the sale in smaller tranches.
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This strategy is consistent with the treasury policy established in June 2025, which limits annual expenditure to 15% and maintains a multi-year fiat reserve buffer. The Foundation has executed several such sales this year under this framework, including a $25 million sale in July and a $12.7 million sale. Additionally, over $32 million in grants were distributed during the first quarter of 2025. Even after the current sale, the Foundation will hold more than 189,000 ETH, 21,000 AETHWETH, and 214 WETH, with a combined value of $922 million, as reported by Arkham Intelligence. This indicates that the conversion, while significant, constitutes just a fraction of the Foundation’s Ethereum reserves.
Evaluating Ethereum’s Market Position
The timing of the Ethereum Foundation’s sale aligns with a recent pullback in Ethereum’s price from its all-time high of $4,946 to around $4,300. Following the Foundation’s announcement, Ethereum’s value dipped by roughly 1%, potentially adding to market pressure. This raises questions about whether the recent peak might be the highest point in the current cycle.
As of now, Ethereum is trading at $4,386, reflecting a 1.5% recovery over the last 24 hours. Nonetheless, the leading altcoin remains 11.6% below its all-time high. It’s noteworthy that past Ethereum Foundation sell-offs during upward trends did not hinder subsequent rallies. For example, a major sale of 100,000 ETH in December 2020 was followed by a significant rally, propelling Ethereum to new highs in 2021. Whether the August peak marks the cycle’s apex or is merely a precursor to further gains will depend on Ethereum’s price movement in response to the ongoing sale.
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