Key Highlights
- The Ethereum Foundation plans to convert 5,000 ETH into stablecoins using TWAP.
- CoWSwap will help in reducing slippage and avoiding sudden price drops.
The Ethereum Foundation announced plans to convert 5,000 Ethereum (ETH), currently estimated at around $11.2 million, into stablecoins using CoWSwap’s Time-Weighted Average Price (TWAP) feature.
In an X post on Wednesday, the foundation said the move is part of its ongoing treasury strategy to fund research and development (R&D), ecosystem grants, and community donations.
The foundation is yet to declare which teams are going to receive these funds. Nor is there any publicly disclosed plan of how the funds will be utilised. CryptoTimes has questioned the Ethereum Foundation regarding the same on social media, and a response is awaited.
Why the TWAP mechanism
The TWAP (Time-Weighted Average Price) mechanism performs a large trade by breaking it into smaller orders spread evenly in a given period of time. This slowly buys or sells the asset at the average market price.
The Ethereum Foundation has chosen CoWSwap’s TWAP mechanism for the same reason, as it aims to perform the large trade gradually over time instead of dumping the overall amount at once. This decentralized approach aids in reducing slippage and preventing sudden downward pressure on the price of Ethereum.
At current prices around $2,240, the sale of 5,000 indicates a modest portion of the Foundation’s holdings. This will have a minimal immediate impact on market sentiment due to the careful execution method.
Treasury strategy and staking activity
For the past few years, the Ethereum Foundation has continuously faced criticism for selling portions of its ETH treasury to finance operations. To alter this, the Foundation recently staked 21,500 ETH in its largest single batch through 11 transactions on March 30, 2026.
The move also indicated a swiftness in the plan to stake up to 70,000 ETH from treasury reserves. The recent transaction was done on April 3, when around 45,000 ETH was staked, taking the total count to 69,500, around 500 coins short of the 70,000 target.
ETH price context
At the time of this writing, Ethereum is trading around $2,215, up 6.14% in the past 24 hours and 4.01% in the past seven days, as per the data provided by CoinMarketCap. Currently, the token is 55.28% lower than its all-time high of $4,953 as recorded on August 25, 2025.
If the price continues to climb, the one-day moving average on the Fibonacci scale mentions the first and second resistances at $2,315 and $2,427, respectively. Conversely, the first and second support zones remain at $1,949 and $1,836.
Positive signal for the ecosystem
The Ethereum Foundation supports protocol development, core research, client diversity, and community initiatives. The sale will help in directly backing grants, donations, and critical R&D work backing Ethereum’s scalability, security, and usability.
This latest move highlights the Ethereum Foundation’s dual focus: responsibly managing its resources today while investing in the long-term health and innovation of the Ethereum network.
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