Ethereum Price Falls After Foundation Moves $654 Million ETH

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

That came amid controversy within the ETH ecosystem as the Ethereum Foundation moved over $654 million worth of ETH into a wallet typically used for large-scale sales, sparking concerns of a dump that could impact the market.

THE ETHEREUM FOUNDATION JUST TRANSFERRED $650M $ETH

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

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

— Arkham (@arkham) October 21, 2025

The sudden transfer was significantly larger than prior foundation moves and comes at a time when investors are already anxious​

A much smaller ETH sale last month barely moved the market, but this time traders are bracing for a potential bigger impact. The fear is that if a lot of ETH is sold quickly, the price could break through major support levels, encouraging more selling and causing losses in 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 points to lower confidence among big holders and whales. Key holders in the 1,000–10,000 ETH bracket trimmed their positions by 8.38% this week. Those with 10,000–100,000 ETH did add a little more, but overall, whales seem to be cautious.

Exchange reserves dropped by more than 2%, signalling that holders are moving coins off exchanges, perhaps to avoid panic selling or to hold for the long term.​

ETH Exchange Reserve Source: CyptoQuant

ETH staking inflows also fell off a cliff, with new staked coins dropping by over 95% compared to last week. This shows fewer investors are locking up coins for extra rewards, a sign that faith in short-term price growth is weak.

Even though the network saw a jump in daily transactions and more coins moved between wallets, most activity looked sell-driven rather than new buying.​

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

Ethereum Price Prediction

Based on the weekly chart, the ETH price is now at $3,861, seeing a drop this session after failing to hold earlier highs close to $4,957. The price lost steam after a steep rally, and now buyers are defending the 50-week SMA around $3,123.

If ETH falls further, the 200-week SMA at $2,446 is the next big support where dip-buyers would likely step in.​

Resistance sits up near $4,937, just above the last swing high before the sell-off started. 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, which shows there is no strong buying energy, but also no deep oversold level just yet. The MACD has turned bearish, with the MACD line crossing below the signal line and moving into negative territory. This signals that sellers have taken control for now.​

ETH has started to form lower highs, which is a sign that the rally is cooling off and buyers are losing grip. As long as the price stays above the $3,123 support, there’s a chance of a rebound towards $4,000 in the coming weeks.

If the price dips 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 if major buyers show up at key support zones.

For now, the ETH price is stuck in a fragile spot, with downward pressure coming from market uncertainty and Ethereum Foundation-driven fear.

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