Ethereum Price Analysis: Impact of Institutional Selling Patterns | Flash news details

According to Grenks.live, the selling behavior of the Ethereum Foundation during market pumps plays a pivotal role in the price movement of Ethereum (ETH). On January 10, 2025, ETH saw a significant price increase, reaching a peak of $4,000 at 14:00 UTC. However, soon after, at 15:30 UTC, the price saw a pullback to $3,850. This price movement is often attributed to strategic sales from large holders, including the Ethereum Foundation, which allegedly aims to take advantage of temporary price increases to manage its operating funds. Source data from Greeks.live indicates that the institution’s pattern of selling ETH during these rallies could influence the volatility observed in the market.

By analyzing the business implications, the selling activities undertaken by the organization during the pumps effectively act as a form of resistance to further price increases. By releasing part of its holdings, the institution contributes to increased supply, which may dampen the upward momentum. This action can deter short-term speculative traders who may be anticipating a sustained upward movement, leading to quick sell-offs once a price peak is detected. The result is a potential stabilization of price fluctuations, albeit at the expense of limiting rapid upward trends. According to Greeks.live, these actions are evident from recent trading volumes, where a notable increase in sell orders was observed at the $4,000 level.

Technical indicators further support this analysis. The Relative Strength Index (RSI) for ETH reached an overbought state of 80 during the peak at 14:00 UTC, indicating a high probability of a price correction. The subsequent decline to $3,850 is consistent with the RSI falling to 65, indicating a return to more neutral market conditions. Volume data as of January 10, 2025 shows that sell-side volumes increased by 30% during peak hours, confirming high selling pressure. Moreover, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover at 15:00 UTC, enhancing the potential for a downtrend. This confluence of indicators provides traders with actionable insights into potential entry and exit points.