- The ETH price risked a potential reversal from $2,400 resistance amid the formation of the classic bearish continuation pattern inverted flag.
- On April 24, the Ethereum Foundation completed an OTC transaction involving 10,000 ETH at an average execution price of $2,387
- The crypto fear and greed index at 34% indicates the border market sentiment remains bearish.
ETH, the native cryptocurrency of smart contract giant, Ethereum, is down 0.4% during Friday’s U.S. market hours to trade at $2,320. The pullback gained its initial momentum from the cautious consolidation trend in the broader crypto market as Bitcoin stalls around the $78,000 mark. However, the market observers address the recent sale of 10,000 ETH from Ethereum foundation as trigger for today’s downtick. Here’s how this move could potentially influence the ETH price in the long-term.
Ethereum Foundation Sells 10K ETH at $2,387 in OTC Deal with BitMine
On Friday April 24th, the Ethereum Foundation finalized an over-the-counter (OTC) trade of 10,000 ETH at an average price of $2,387 to treasury management company BitMine Immersion Technologies.
This is the second such sale to the same company in just over a month, following an earlier sale on March 15th at a price of $2,043 per ETH. As per their treasury plan to spend 15% of its holdings annually, the Foundation uses the funds to fund important development, research and community programs.
But these sales often attract the masses’ disdain that if the Foundation thought ETH was “undervalued” it would not sell. EF counters this argument with their large staking operation of +70,000 ETH which demonstrates their long-term investment intent.
Also, the reliance on OTC instead of exchanges has a far lesser impact on short-term price action.
Moreover, these actions are actively fund large upgrades such as the recent Dencun and Prague upgrades which keep the network competitive to alternatives such as Solana, driving fundamental demand.
ETH Price May Reject From $2,400 Barrier Amid Bear Flag Formation
Following a significant correction in January 2026, the ETH price entered a short-term recovery trend within the two ascending trendlines of an inverted flag pattern. The chart setup is commonly spotted in an established downtrend as the temporary upswing allows sellers to recuperate the exhausted bearish momentum.
Currently trading at $2,318, Ethereum ETH-0.33% price faces an overhead supply pressure from the flag resistance at $2,400. If geopolitical uncertainties continue to pressurize the broader crypto market, the coin price will likely plunge 8.6% down to retest the support trendline of this pattern.
A bearish breakdown below this support will further accelerate the selling pressure on Ethereum coin, potentially extending the correction trend by another 16% to hit $1,750. The downsloping slope of 100-and-200-day EMA reinforces the bearish narrative and suggests the path to least resistance is down.
On the contrary, if the ETH price breaks above the flag resistance the buyers could strengthen their grip over this asset to invalidate the prevailing bearish theory.
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