ethereum-foundation-unsettles-market-algotech-algt-resilient-with-historic-presale-as-aptos-apt-hedera-hbar-community-joins-in/” rel=”nofollow”>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 whether it could be on top of the market.
The ethereum Foundation moves 1,000 eth
SpotOnChain on-chain analytics platform revealed in an x (formerly twitter) x.com/spotonchain/status/1788144034881437788″ rel=”nofollow”>mail that the ethereum Foundation transferred 1,000 eth ($3 million) to a multi-signature intermediate wallet (0xbc9) on May 8. This development is more concerning as SpotOnChain revealed that the Foundation has made other transactions since early 2024.
Related reading
Depending on the platform, the ethereum-ultra-sound-money-narrative/” rel=”nofollow”>ethereum Foundation has 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 through the same multi-signature wallet.” Interestingly, SpotOnChain noted that these transactions often occur before a price drop.
It is worth mentioning that the ethereum Foundation already has a reputation for selling at the top, suggesting that selling before a dip might not be a coincidence. In 2022, NewsBTC reported that ethereum fell 40% after the Foundation sold 20,000 eth. Meanwhile, in 2021, eth experienced a downward trend for months after the organization sold 35,000 eth.
<img decoding="async" class="alignnone wp-image-607364 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/05/The-Ethereum-Foundation-moves-1000-ETH.png" alt="ethereum” width=”608″ height=”312″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_1cc160.png?w=512 512w, https://technicalterrence.com/wp-content/uploads/2024/05/The-Ethereum-Foundation-moves-1000-ETH.png 460w” sizes=”(max-width: 608px) 100vw, 608px” loading=”lazy” data-recalc-dims=”1″/>
eth’s price action after the ethereum Foundation sold 20,000 eth in 2022 | Source: Tradingview.com
Journalist Colin Wu also x.com/WuBlockchain/status/1395668264714489857″ rel=”nofollow”>revealed back then that ethereum-scalability-leap-vitalik-buterin-solution/” rel=”nofollow”>ethereum founder Vitalik Buterin, had persuaded the foundation to “sell 70,000 eth by the end of 2018 to support the work of developers.” Wu further stated that the Foundation's liquidation is a “normal operation, but it also means that the Foundation thought a bear market was coming.”
Therefore, from Wu's revelation, it can be deduced that the ethereum Foundation could have an idea of when the market top is, prompting them to always make these sales before eth makes a ethereum-price-expectations-dampened-analysis/” rel=”nofollow”>significant decrease.
An eth crash may already be on the horizon
A crypto analyst recently known as Shin Forex foretold that ethereum could soon fall as low as $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.
Related reading
From a technical analysis perspective, Shin Forex also revealed that the eth/btc pair It has now broken below its 0.05 support. ethereum is said to have seen a significant drop when this happened in the bitcoin-cycle-schedule-price-lines-previous-cycles/” rel=”nofollow”>market cycles in 2016 and 2019. As such, the analyst has no doubt that eth will likely spiral downward again, with the crypto token falling to as low as $2,500.
At the time of writing, ethereum is trading at around $3,000, according to ethereum/” rel=”nofollow”>data from CoinMarketCap.
x/THa6GVdg/” alt=”ethereum Price Chart by Tradingview.com (Cryptocurrency Analyst)” width=”3286″ height=”1576″ loading=”lazy”/>
eth price looking to establish support above $3,000 | Source: ETHUSD on Tradingview.com
Featured image from The Motley Fool, chart from Tradingview.com
