ETH Price Plummets 3.5% Amidst Ethereum Foundation’s Recent Sale of 1,000 ETH
The price of ETH has taken another hit as the Ethereum Foundation continues to offload its holdings. In a recent move, the Foundation transferred 1,000 ETH, worth approximately $2.38 million, to a multi-signature wallet. This follows a previous transaction where the Foundation swapped 100 ETH for DAI stablecoins.
It is speculated that the ETH in the multi-signature wallet will be transferred to another wallet and exchanged for DAI, similar to previous patterns observed. This continuous sell-off by the Foundation has amplified the selling pressure on ETH, causing its price to drop to $2,325 with a market cap of $281 billion.
In response to concerns from the community, Ethereum researcher Justin Drake has stated that the Foundation plans to release a report addressing these sell-offs. Additionally, Ethereum co-founder Vitalik Buterin has reassured the community that the Foundation’s budget strategy involves spending 15% of their remaining funds each year, ensuring longevity and gradual reduction in their share of the ecosystem over time.
However, the Ethereum Foundation’s continuous selling of ETH has drawn criticism and negative feedback from the community, especially since they recently transferred $94 million worth of ETH to the crypto exchange Kraken. This series of unexplained large ETH movements has raised questions about the Foundation’s intentions.
Meanwhile, ETH’s price remains under pressure not only due to the Foundation’s sell-offs but also due to macro uncertainty and weakness in the US jobs data. The ETH price has lost over 7% after facing rejection at $2,550, but there is hope that it could find support at $2,200 before resuming its upward trend.
Furthermore, the introduction of Ethereum ETFs has disappointed market analysts, leading to a drop in demand for spot ETH. The market depth for ETH pairs on US-based centralized exchanges has fallen by 20% since the introduction of ETFs.
Despite the ongoing sell-offs and market challenges, the Ethereum community remains optimistic about the long-term potential of the platform and its ecosystem.