A member of the Ethereum Foundation recently addressed investor concerns following the nonprofit’s massive ETH transfer on Friday. This development is particularly significant as the transaction has sparked bearish talk in the crypto community, particularly due to EF’s association with the Ethereum network.
$94 Million ETH Transfer Is Not a Sale – Ethereum Foundation
On Friday, the Ethereum Foundation It has been deposited. 35,000 ETH, worth $93.8 million, on the Kraken exchange has led to a lot of speculation among ETH bulls. These concerns stem from the bearish nature of such a large transaction as well as the role of EF in the Ethereum ecosystem.
The Ethereum Foundation, which is described as a non-profit organization, claims to play a crucial role in fostering the technological development of the Ethereum network. Therefore, a sudden dump of Ethereum coins of this magnitude is sure to catch the attention of investors and market enthusiasts in general.
in X Post On Saturday, Aya Miyaguchi, CEO of the Ethereum Foundation, clarified the recent transaction, saying it was not “a sale” but rather an operation to manage the organization’s treasury. Miyaguchi claims that the ETH deposited on Kraken was exchanged for fiat currency to settle some obligations. The EF manager also attributed the massive withdrawal of ETH to a previous restriction on treasury activities due to regulatory issues.
Miyaguchi said:
The Economic Development Fund has a budget of around $100 million per year, mostly consisting of grants and salaries, and some beneficiaries can only accept cash. This year, there was a long period of time where we were advised not to do any treasury activities due to regulatory complexities, and we were unable to share the plan in advance.
Before moving 35,000 ETH to Kraken, EF was dumping a large amount of ETH in 2024, which amounted to 2,516 ETH for $7.4 million in DAI. Aya Miyaguchi stated that the Ethereum Foundation will maintain the ongoing ETH sale in a “planned and gradual” manner.
ETH Price Overview
according to Data from CoinMarketCap, ETH is currently trading at $2,748 with a slight increase of 0.63% in the last day. The second-largest cryptocurrency is currently stuck in a market congestion between $2,500 and $2,800. If Ethereum bulls manage to assert their control over the market, the altcoin could rally higher from this consolidation with the next major resistance level being identified at $3,560. However, the opposite scenario could lead to massive selling pressure that could push Ethereum price down to $2,100.
Featured image from INX, chart from Tradingview