Ethereum Foundation sells 2,785 ETH, drawing criticism amid market anxiety

On October 26, Lookonchain revealed that a wallet associated with the Ethereum Foundation, the non-profit supporting Ethereum's ecosystem development, sold 2,785 units, amounting to approximately $6.42 million. This sale followed a prior similar transaction two weeks ago, which coincided with a 9% price decrease.

Earlier, two Foundation-linked wallets moved $11.13 million in ETH to Kraken, an action often interpreted as a preliminary sale step. Subsequently, Lookonchain noted that an Ethereum OG liquidated 1,500 units, valued at roughly $3.46 million, after remaining inactive for nine years. This investor initially acquired 100,000 ETH for $31,000 during the 2015 ICO and still retains 48,500 ETH (approximately $112.7 million).

One analyst expressed that seeing these sales again is "incredibly frustrating." While affirming support for ETH, this individual questioned why the asset is continuously sold rather than having measures implemented to boost its value. The analyst suggested, "Start thinking seriously about buybacks. Create stronger incentives for L2s to accumulate and buy back ETH. Improve ETH value capture. The ecosystem is incredible. Now we need the economics of the token to reflect that."

Maelstrom CIO Arthur Hayes further contributed to the recent selling pressure. As reported by CryptoPotato, he disposed of about $22.28 million in altcoins, which included 6,400 ETH (around $15.2 million). Hayes stated, "I dumped it all. The Maelstrom directional book, took profits on $ETH, $ENA, $UNI and other shitcoins. I think we gotta go down to go up. It looks a bit dicey out there in macro and geopolitical land. Going to sit on the sidelines and wait for the all clear signal … Brrrrr — Arthur Hayes (@CryptoHayes) October 24, 2026."

This selling activity carries a bearish implication for two primary reasons: it increases the circulating supply, potentially depressing the price if demand stagnates, and it risks eroding investor confidence, prompting smaller holders to exit. Currently, ETH's Fear and Greed Index stands at 31, indicating heightened community apprehension.

Conversely, BitMine continues to augment its ETH holdings. The entity acquired an additional 10,452 units, bringing its total to 6,051,933 coins, which represents about 4.95% of Ethereum's supply, nearing its stated objective of controlling 5% of all assets. Furthermore, BitMine repurchased 2.04 million shares at an average price of $22.48, accumulating 22.9 million shares, or nearly $400 million.

This dedication to accumulation contrasts with the recent divestment trends. Data from CryptoPotato showed that Ethereum concluded the third quarter with 43.8 million coins staked, following an influx of nearly 2 million units into staking during that period. This suggests sustained conviction among long-term investors, even as the annualized staking yield has decreased from 2.81% to 2.63%.

The divergent actions of institutional participants, such as the Foundation's sales versus BitMine's accumulation, highlight ongoing tension in the market regarding tokenomics and perceived asset value within the DeFi and L2 landscape.

Why it matters

The Foundation's sales increase market supply, which could pressure ETH's price if demand does not compensate. This sentiment is critical for DeFi and L2 adoption, as token economics must support ecosystem growth. Investors should watch how institutional accumulation, like BitMine's buying, counters these supply-side pressures.