Ethereum Foundation Sells ETH to Fund Development as Price Reaches All-Time High

The Ethereum Foundation (EF) has announced it will sell another 10,000 ETH over the coming weeks to support its work in research and development, grants, and donations. This sale is estimated to be worth approximately $43 million, based on Tuesday's prices. The Foundation stated that the conversions will be done in multiple smaller transactions to minimize market impact, in line with a new treasury policy released in June.

This policy caps annual operational spending and aims for leaner long-term spending. In July, the Foundation had already sold 10,000 ETH to SharpLink Gaming, making it the first publicly traded company to acquire ETH directly from the EF. The news comes as the price of ETH has been soaring, recently hitting a new all-time high of $4,866 in late August before settling around $4,330 on Tuesday.

This move by the EF also coincides with significant developments in Ethereum's testnet infrastructure. The Holesky testnet, a key environment for validator testing, has been retired due to persistent issues, with a new network called Hoodi taking its place. This change, along with the upcoming Fusaka upgrade, aims to improve efficiency and reduce risks for the mainnet, which could strengthen investor confidence and the long-term price of ETH.

The daily chart for ETH shows the cryptocurrency consolidating in the $4,340 to $4,400 range after its recent rally. Analysts note that a breakout could occur if the price holds above $4,150, with potential targets reaching $4,800 and beyond. However, a drop below that support level could see a pullback to the $3,800 to $4,000 range.