The Ethereum ecosystem stands at a significant crossroads, highlighted by the Ethereum Foundation’s transfer of $32 million in ETH to multisig wallets, coinciding with Fidelity’s purchase of $25.7 million in the cryptocurrency.
According to data from LookOnChain, the Foundation has been methodically moving 1,000 ETH each day, equating to approximately $2.46 million, to the multisig wallet identified as 0xc061, totaling 13,000 ETH over recent weeks.
The #EthereumFoundation has been transferring 1,000 $ETH($2.46M) daily to multisig wallet 0xc061 recently, totaling 13,000 $ETH($32M) so far.https://t.co/IN91jVuDbk pic.twitter.com/LeXJRpVXbt
— Lookonchain (@lookonchain) July 1, 2025
This ongoing sale of ETH by the Foundation has elicited strong criticism from the community throughout 2025, with opponents urging the organization to consider alternative funding methods, such as Decentralized Finance (DeFi) options like staking, instead of pursuing direct sales.
Interestingly, despite the Foundation’s selling activities, recent figures indicate a substantial accumulation of ETH by large investors or “whales,” reaching historic levels of 14.2 million ETH among wallets containing between 1,000 and 10,000 tokens.
Whales are waking up.The biggest $ETH accumulation spike since 2018 just hit.Smart money is moving quietly.They’re positioning for something big.Are you paying attention? pic.twitter.com/84hTmGxH83
— Merlijn The Trader (@MerlijnTrader) July 1, 2025
This degree of accumulation is reminiscent of events preceding significant bull runs, such as those witnessed after the bear market bottoms of 2018.
Foundation Faces Community Revolt Over Persistent ETH Sales
The Ethereum Foundation’s treasury management tactics have come under fire, as the organization appears to prioritize sales of ETH despite the emergence of alternative funding avenues.
Skeptics argue that the Foundation’s primary activity has become synonymous with “dumping ETH,” causing a decline in trust towards the organization that underpins the ecosystem.
Community dissatisfaction surged in January when Foundation employee Josh Stark defended the sales by suggesting they represent “actively using ETH.” This justification led to backlash, with users labeling it as “embarrassing” and questioning why urgent funds, such as $300,000, needed to be raised through public sell orders.
[ATTENTION] The Ethereum Foundation just sold another 100 $ETH for 336,475 $DAI!In total, they have sold 200 $ETH ($672K) in 2025 at an average price of $3,361 over the past 12 days.$ETH remains 31% below its 2021 ATH of $4,878, while $BTC has hit a new ATH of $109K today!… https://t.co/9CWWVsrfhj pic.twitter.com/ZOr504i1HG
— Spot On Chain (@spotonchain) January 20, 2025
In response to the criticism, Vitalik Buterin also defended the Foundation’s strategy, pointing to regulatory challenges that arise from staking large amounts of ETH and emphasizing the need for impartiality with respect to potential hard forks.
Nevertheless, he conceded that the need for such caution has diminished and disclosed that the Foundation is now considering staking alternatives after years of hesitance.
The concerns historically were (1) regulatory, (2) if EF stakes ourselves, this de-facto forces us to take a position on any future contentious hard fork.(1) is less than before, (2) remains. There's definitely ways to minimize (2), and we're recently been exploring them.
— vitalik.eth (@VitalikButerin) January 20, 2025
To counter the backlash, the Foundation has increased its involvement in DeFi, deploying $120 million across platforms including Aave, Spark, and Compound in February. It also borrowed $2 million in GHO stablecoin from Aave, further embedding itself within the decentralized finance ecosystem.
Recent updates to treasury policies have established a target operating budget of 15%, providing a 2.5-year runway for maintenance, along with systematic approaches to ETH sales and capital deployment.
Furthermore, the Foundation has committed to publishing quarterly transparency reports and performance metrics to enhance community understanding of its decision-making processes.
Despite these adjustments, the organization undertook a restructuring of its Protocol Research and Development division in June, which involved layoffs and a rebranding to “Protocol” with a more focused agenda aimed at optimizing Layer 1 scaling, Layer 2 development, and user experience.
Institutional Accumulation Indicates Historic Bull Market Setup
Recent whale accumulation metrics provide a compelling bullish narrative for Ethereum, indicating that institutional purchasing has reached unprecedented heights, akin to the lows observed during the 2018 bear market.
Inflows to accumulator addresses highlight significant institutional interest, with metrics indicating a rise to 3.6K levels—the largest capital influx in ETH’s history.
Source: @QuintenFrancois on X
Historical analysis shows that significant accumulation spikes in 2019 and 2020 preceded major bull market phases, with the latter period leading to a peak of $4,800 for ETH.
The current level of accumulation has even surpassed previous instances, suggesting the possibility of larger appreciation cycles on the horizon.
Institutional interest is particularly noteworthy given Ethereum’s ongoing technical challenges and competition from networks like Solana, Base, and BNB.
While ETH strives to break out from resistance, institutional funds continue to influx, exemplified by Fidelity’s most recent investment in Ethereum.
JUST IN: Fidelity buys 10,283.08 Ethereum worth $25.7 million. pic.twitter.com/zZw8uGDFKA
— Whale Insider (@WhaleInsider) July 1, 2025
Technical Charts Indicate Key Decision Point Approaching
Analyzing ETH’s weekly chart reveals a significant technical narrative centered on the 200-period exponential moving average at $2,274.26, where the asset currently tests crucial support within an upward channel formation.
Historical patterns show multiple successful rebounds from this moving average, which has proven reliable as a support zone throughout the existing cycle.
The Fibonacci retracement levels position ETH within key zones, with the $4,000 area delineated in purple representing the next major target. The ascending trendline has established higher lows, while recent corrections are testing this critical support confluence, indicating the potential direction for future movements.
A comparative analysis between 2017 and 2025 reveals remarkable similarities in consolidation patterns leading up to explosive breakouts.
Elliott Wave analysis indicates that ETH is currently in the first wave of a larger advance, with targets suggesting potential highs of $7,300 at the 4.0 Fibonacci extension level, representing a threefold gain from present levels.
The 2017 comparison also showcases extended sideways movement prior to sharp rises toward peaks of $1,400.
Moreover, the current RSI levels around 50.96 indicate neutral momentum, historically preceding significant directional moves, akin to conditions observed prior to the 2017 bull run.
The confluence of technical and fundamental indicators strongly favors an upward breakout, especially with record institutional accumulation outweighing the selling pressure from the Foundation at the pivotal $2,274 EMA 200 support.
ETH appears poised for an initial ascent toward $4,000, with prospects of extending to $7,300 contingent on completing the 2017 fractal pattern.
However, any failure to maintain the current range of $2,200–$2,800 may trigger deeper corrections, underscoring the importance of defending the EMA 200 to sustain bullish momentum.
The post Ethereum Foundation Dumps $32M as Fidelity Buys $25.7M – ETH $2200 Crash or $2800 Breakout Incoming? appeared first on Finance Newso.
