An ethereum Foundation member has recently responded to investors’ concerns following a massive eth transfer made by the non-profit organization on Friday. This development is particularly important as this transaction sparked bearish talk in the cryptocurrency community, especially due to EF’s association with the ethereum network.
$94M eth Transfer Is Not a Settlement – ethereum Foundation
On Friday, the ethereum Foundation x.com/spotonchain/status/1818596658349068520″ target=”_blank” rel=”noopener nofollow”>deposited 35,000 eth, valued at $93.8 million, was traded on the Kraken exchange, sparking much speculation about eth. These concerns arose from the bearish nature of such massive transactions, as well as the role of the EF in the ethereum ecosystem.
Described as a non-profit organization, the EF claims a pivotal role in sponsoring the technological development of the ethereum network. Therefore, a sudden eth dump of this size is sure to draw the attention of investors and market enthusiasts at large.
In ax.com/AyaMiyagotchi/status/1827219654999470258″ target=”_blank” rel=”noopener nofollow”> Publication x On Saturday, Aya Miyaguchi, executive director of the ethereum Foundation, explained the recent transaction by stating that it was not “equivalent to a sale,” but rather a process of managing the organization’s treasury. Miyaguchi claims that the eth deposited on Kraken was exchanged for fiat money to settle certain obligations. The EF director also attributed the massive withdrawal of eth to a previous restriction on treasury activities due to regulatory-related issues.
Miyaguchi said:
EF has a budget of about $100 million a year, which is largely made up of grants and salaries, and some grantees can only accept fiat money. This year, there was a long period of time where we were advised not to do any treasury activity due to regulatory complications, and we were unable to share the plan in advance.
Prior to this 35,000 eth transfer to Kraken, the EF had been selling significant amounts of eth in 2024, amounting to 2,516 eth for $7.4 million DAI. Aya Miyaguchi has stated that the ethereum Foundation will maintain this ongoing eth sell-off in a “planned and gradual” manner.
eth Price Overview
According ethereum/” target=”_blank” rel=”noopener nofollow”>data from CoinMarketCap, eth is currently trading at $2748 with a slight gain of 0.63% over the past day. The second-largest cryptocurrency is currently stuck in a range-bound market between $2500 and $2800. If eth bulls manage to establish market control, the altcoin could break out of this consolidation and its next major resistance would be set at $3,560. However, a reverse scenario could result in massive selling pressure that would push ethereum price to a low of $2,100.
Featured image of INX, chart from Tradingview
