According to Greeks.live, the Ethereum Foundation's selling behavior during market pumps plays a pivotal role in the price action of Ethereum (ETH). On January 10, 2025, ETH experienced a significant price increase, reaching a peak of $4,000 at 14:00 UTC. However, shortly after, at 15:30 UTC, the price saw a retraction to $3,850. This price movement is often attributed to strategic sales from large holders, including the Ethereum Foundation, which allegedly aims to capitalize on the temporary price surges to manage its operational funds. Source data from Greeks.live suggests that the Foundation's pattern of selling ETH during these spikes could be influencing the volatility observed in the market.

Analyzing the trading implications, the Foundation's selling activities during pumps effectively act as a form of resistance to further price increases. By releasing a portion of its holdings, the Foundation contributes to an increase in supply, which can dampen bullish momentum. This action can deter speculative short-term traders who might anticipate continuous upward movement, leading to a swift sell-off once a price peak is detected. The result is a potential stabilization of price swings, albeit at the cost of limiting rapid upward trends. According to Greeks.live, these actions are evident from the recent trading volumes, where a noticeable spike was observed in sell orders at the $4,000 mark.

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