The Ethereum Foundationa non-profit organization that supports the Ethereum ecosystem recently launched a significant amount of ETH. Considering what this transaction could entail, it has caught the attention of the crypto community, which is already speculating on whether the market top might hold back.
Ethereum Foundation moves 1,000 ETH
On-chain analytics platform SpotOnChain revealed in an X (formerly Twitter) after that the Ethereum Foundation transferred 1,000 ETH ($3 million) to a mid-tier multi-signature wallet (0xbc9) on May 8. This development is more concerning as SpotOnChain revealed that the Foundation has made other transactions since early 2024.
According to the platform, the Ethereum Foundation has sold 1,766 ETH for 4.81 million DAI at an average price of $2,725 for each ETH. These transactions are said to have taken place in “several small batches” via the same wallet with multiple signatures. Interestingly, SpotOnChain noted that these trades often occur prior to a price drop.
It is worth noting that the Ethereum Foundation already has a reputation for sales at the top, indicating that their sales before a decline cannot be a coincidence. In 2022, NewsBTC reported that Ethereum fell 40% after the Foundation sold 20,000 ETH. Meanwhile, ETH saw a downward trend for months in 2021 after the organization sold 35,000 ETH.
ETH’s price action after the Ethereum Foundation sold 20,000 ETH in 2022 | Source: Tradingview.com
Journalist Colin Wu too revealed then that The founder of Ethereum, Vitalik Buterin, had convinced the foundation to “sell 70,000 ETH at the beginning of 2018 to support the work of developers.” Wu further claimed that the Foundation’s sell-off is a “normal operation, but it also means that the Foundation thought a bear market was coming.”
Therefore, one can infer from Wu’s revelation that the Ethereum Foundation might have an idea of when the market tops, prompting them to always make these sales before ETH makes a profit. significant decrease.
An ETH drop may already be on the horizon
A crypto analyst recently known as Shin Forex predicted that Ethereum could soon drop to $2,500. The analyst explained that there has been a slowdown in liquidity flowing into the Ethereum ecosystem. This could impact the price of ETH as it indicates a lack of interest in the token among investors.
From a technical analysis perspective, Shin Forex also revealed that the ETH/BTC pair has now broken below the support of 0.05. Ethereum is said to have experienced a significant crash when this happened in the US market cycles in 2016 and 2019. As such, the analyst has no doubt that ETH will likely spiral downward again, with the crypto token falling to a low of $2,500.
At the time of writing, Ethereum is trading around $3,000 facts from CoinMarketCap.
ETH price looking to establish support above $3,000 | Source: ETHUSD on Tradingview.com
Featured image from The Motley Fool, chart from Tradingview.com