Ethereum
Ethereum Foundation moves 1,000 ETH
The Ethereum Foundationa non-profit organization that supports the Ethereum ecosystem, recently transferred a significant amount of ETH. Given what this transaction could entail, it has caught the attention of the crypto community, who are already speculating on whether the market top could be reached.
Ethereum Foundation moves 1,000 ETH
SpotOnChain On-Chain Analytics Platform revealed in an X (formerly Twitter) job that the Ethereum Foundation transferred 1,000 ETH ($3 million) to a multi-signature intermediary wallet (0xbc9) on May 8. This development is more concerning as SpotOnChain revealed that the Foundation has made further transactions since the start of 2024.
Depending on the platform, the Ethereum Foundation sold 1,766 ETH for 4.81 million DAI at an average price of $2,725 for each ETH. These transactions allegedly occurred in “multiple small batches via the same multi-signature wallet.” Interestingly, SpotOnChain noted that these transactions often take place before a price drop.
It is worth mentioning that the Ethereum Foundation already has a reputation for selling at the top, suggesting that their selling before a decline may not be a coincidence. In 2022, NewsBTC reported that Ethereum fell 40% after the Foundation sold 20,000 ETH. Meanwhile, in 2021, ETH saw a downward trend for months 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 also revealed at the time that Vitalik Buterin, founder of Ethereum, had persuaded the foundation to “sell 70,000 ETH in early 2018 to support the work of developers”. Wu further claimed that the Foundation’s sale is a “normal transaction, but it also means that the Foundation believed a bear market was coming.”
Therefore, from Wu’s revelation, it can be inferred that the Ethereum Foundation might have an idea of when the market top is, which incentivizes them to always make these sales before ETH makes a significant decline.
An ETH decline could already be on the horizon
A crypto analyst recently known as Shin Forex predicted that Ethereum could soon fall to $2,500. The analyst explained that there has been a slowdown in liquidity flowing into the Ethereum ecosystem. This could affect the price of ETH as it suggests 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 moved below its 0.05 support. Ethereum reportedly experienced a major crash when this happened in the market cycles in 2016 and 2019. As such, the analyst has no doubt that ETH will likely fall again, with the crypto token falling to $2,500.
At the time of writing, Ethereum is trading at around $3,000, according to data 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