Ethereum Price Drops After Foundation Moves $654 Million ETH

Ethereum prices fell a fraction of a percent over the past 24 hours, trading 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 when the Ethereum Foundation moved more than $654 million worth of ETH to a wallet typically used for large-scale sales, raising concerns about a dump that could impact the market.

THE ETHEREUM FOUNDATION JUST TRANSFERED $650 Million $ETH

The Ethereum Foundation just transferred $654 million worth of ETH to a wallet that had been used for sales in the past.

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

— Arkham (@arkham) October 21, 2025

The sudden transfer was significantly larger than previous foundation moves and comes at a time when investors are already worried

A much smaller ETH sell-off last month barely moved the market, but this time traders are preparing for a potentially bigger impact. The fear is that if a lot of ETH is sold quickly, the price could break through major support levels, spurring more selling and triggering losses in other coins tied to Ethereum’s performance.

The latest actions have also reignited discussions about the future of Ethereum’s leadership and who controls key decisions.

Ethereum Price: On-chain signals show red flags

On-chain data for ETH in October indicates lower confidence among large holders and whales. Keyholders in the 1,000–10,000 ETH category have reduced their positions by 8.38% this week. Those with 10,000-100,000 ETH added a little more, but overall whales seem to be cautious.

Stock exchange reserves fell more than 2%, indicating that holders are removing coins from exchanges, perhaps to avoid panic selling or to hold them for the long term.

ETH Exchange Reserve Source: CyptoQuant

ETH strike inflow also fell off a cliff, with new coin stakes falling by more than 95% compared to last week. This shows that fewer investors are locking up coins for additional rewards, a sign that confidence in short-term price growth is weak.

Even though the network saw a leap of faith every day transactions and more coins were moved between wallets, most activity seemed driven more by sales than new purchases

The number of liquidations was high, with more than $1.77 billion in long positions and $824 million in shorts wiped out following the Foundation’s announcement. This shows that traders got spooked and rushed to close positions before ETH could fall further

Ethereum price prediction

Based on the weekly chart, ETH price is now up $3,861and saw a decline this session after failing to hold previous highs near $4,957. The price lost strength after a steep rally, and now buyers are defending the 50-week SMA around $3,123.

If ETH falls further, the 200-week SMA of $2,446 is the next major support that dip buyers would likely step into.

Resistance is around $4,937, just above the last swing high before the sell-off began. The market is now below this point and struggling against previous support zones.

ETHUSD analysis source: Tradingview

The RSI is at 53.21, barely above the midpoint, indicating no strong buying energy, but no deep oversold levels yet either. The MACD has turned bearish, with the MACD line crossing below the signal line and entering negative territory. This indicates that sellers have taken control for the time being

ETH is starting to form lower highs, which is a sign that the rally is cooling and buyers are losing their grip. As long as the price remains above the USD 3,123 support, there is a chance of a recovery towards USD 4,000 in the coming weeks.

If the price falls 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 come or big buyers emerge in key support zones.

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

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