Ethereum Foundation Wallet Sells Over 7,000 ETH: Smart Money Taking Profits?

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Ethereum has been in the spotlight lately after reaching its highest levels since November 2021, showcasing remarkable resilience following weeks of massive price surges. The rally has drawn intense debate across the market, with analysts divided on Ethereum’s next move. Some argue that a deeper correction is inevitable after such an aggressive run, while others believe ETH is primed for a massive breakout above its all-time highs.

On-chain data continues to add fuel to the discussion. According to Lookonchain, the Ethereum Foundation-linked wallet 0xF39d sold 7,294 ETH, worth approximately $33.25 million, over the past three days. The average selling price was $4,558, a level that highlights confidence in taking profits as ETH consolidates just below major resistance. Notably, this same wallet has a history of timing the market well, having accumulated 33,678 ETH at just $1,193 back in June 2022.

Despite this selling activity, bulls remain optimistic, pointing to strong institutional demand and record inflows into Ethereum ETFs as drivers of continued upside. As ETH holds firm near critical resistance, the coming weeks could define whether the market faces a healthy correction—or prepares for a surge into uncharted territory.

Smart Money Moves Around Ethereum

Ethereum’s latest price action has been accompanied by significant on-chain activity, and one wallet in particular has caught the attention of analysts. According to Lookonchain, the Ethereum Foundation-linked address 0xF39d has built a reputation as a remarkably strategic trader. Back in June 2022, when the market was deep in a bearish phase, this wallet accumulated 33,678 ETH, worth about $40.2 million, at an average entry price of just $1,193. That move alone highlighted the long-term conviction and precise timing often attributed to institutional-grade market participants.

Fast forward to today, and the same wallet recently sold over 7,000 ETH near the $4,500 mark, capturing massive profits. This kind of activity underscores the role of “smart money” in shaping Ethereum’s market cycles, often positioning ahead of broader trends. The timing of these sales has stirred debate, particularly as ETH hovers below its 2021 highs and analysts remain divided on the broader outlook.

For some, these transactions signal caution, suggesting that Ethereum may be nearing the end of its current cycle as profit-taking intensifies. Others argue the opposite: that despite short-term volatility, ETH is in the early stages of a bullish phase fueled by institutional inflows, ETF adoption, and diminishing supply on exchanges.

In this environment of volatility and uncertainty, wallets like 0xF39d serve as key reference points, offering a glimpse into how experienced players are navigating Ethereum’s complex price structure. Whether this marks a local top or simply a pause before further gains remains one of the most pressing questions in the market.

ETH Price Action Analysis: Testing Support

Ethereum’s daily chart highlights its strong rally, followed by the recent retrace from multi-year highs near $4,800. After a steep climb through July and early August, ETH is now consolidating around the $4,420 level. Despite this pullback, the broader structure remains bullish.

The 50-day moving average (blue line) continues to trend upward, providing dynamic support near $3,480. Meanwhile, the 100-day (green) and 200-day (red) moving averages sit much lower at $3,012 and $2,564 respectively, showing how extended this move has been. ETH remains well above these long-term averages, confirming that bulls still control momentum.

The retrace resembles a healthy correction, allowing the market to digest gains and reset before the next move higher. If ETH holds above the $4,200–$4,300 zone, this level could act as a strong base for another push toward the $4,800–$5,000 resistance.

On the downside, a break below $4,200 could open the way toward the $3,800–$3,900 support area, aligning with the rising moving averages. Overall, ETH remains in a bullish trend, with corrections looking more like pauses than reversals.

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