Ethereum Foundationa non-profit organization that supports the Ethereum ecosystem, recently transferred the A large amount of ETH. Considering what this deal could mean, it has caught the attention of the cryptocurrency community, which has already begun speculating about whether or not the market has reached the top.
Ethereum Foundation transfers 1000 ETH
SpotOnChain on-chain analytics platform Revealed on X (formerly Twitter) mail The Ethereum Foundation transferred 1,000 ETH ($3 million) to an intermediate multi-signature wallet (0xbc9) on May 8. This development is even more worrying as SpotOnChain revealed that the institution has conducted other transactions since the beginning of 2024.
According to the platform, Ethereum Foundation It sold 1,766 ETH for 4.81 million DAI at an average price of $2,725 per ETH. These transactions are said to have occurred in several small batches via the same multi-signature wallet. Interestingly, SpotOnChain noted that these transactions often occur before prices drop.
It is worth noting that the Ethereum Foundation It already has a reputation To sell at the high, suggesting that selling before the decline may not be a coincidence. In 2022, NewsBTC reported that Ethereum fell 40% after the institution sold 20,000 ETH. Meanwhile, in 2021, ETH saw a downward trend for several 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 Waugh also open At that time that Ethereum founder, Vitalik ButerinIt convinced the foundation to “sell 70,000 Ethereum at the end of 2018 to support the work of developers.” Wu also claimed that the ETF's selling was “a normal process, but it also means that the ETF thought a bear market was coming.”
Therefore, from Wu's revelation, one can infer that the Ethereum Foundation could have an idea of when the market reaches the top, prompting them to always make these sales before Ethereum does. Significant decrease.
An ETH decline may already be on the horizon
A crypto analyst known as Shin Forex recently And he expected That Ethereum may soon fall to a low of $2,500. The analyst explained that there has been a slowdown in the flow of liquidity into the Ethereum ecosystem. This may 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 Ethereum/Bitcoin pair It has now broken the 0.05 support level. Ethereum is said to have had a major crash when this happened in Market cycles In 2016 and 2019. As such, the analyst has no doubt that ETH will likely fall again, with the cryptocurrency token falling as low as $2,500.
At the time of writing, Ethereum is trading at around $3,000, according to Data From Coin Market Cap.
ETH price looking to establish support above $3,000 | Source: ETHUSD on Tradingview.com
Featured image from The Motley Fool, chart from Tradingview.com