The Ethereum Foundation has begun liquidating $13.3 million worth of Ethereum (ETH), prompting investors to consider the potential impact of the move on ETF prices. In terms of market capitalization, ETH happens to be the second most prominent cryptocurrency.
Customarily, a move in the foundation marks the beginning of a market movement that predicts a subsequent decline. Nonetheless, Ethereum creates an optimistic scenario.
based on Ethereum Predictions, there are positive signs. The current trading price is $3,550. Ethereum has increased in value by 14.6% over the past week, reaching a market capitalization of $420 billion, while the cryptocurrency market as a whole is up 17.8%.
In a bullish scenario, market pullbacks are prevalent. Nonetheless, speculation arises as investors anticipate the subsequent course of action. The weekly relative strength index (RSI) of 89.95 appears to be consistent with the Ethereum Foundation’s selling activity.
To put into broader context, Bitcoin (BTC) has experienced a surge of more than 28% over the past week, reaching nearly $69,000. The current price is $67,000.
The Ethereum network is currently preparing to launch the Dencun update, which combines the Deneb and Cancun updates. This is expected to occur on March 13th and will serve to improve Ethereum’s upgradability, efficiency, and security while reducing layer 2 transaction fees.
The Ethereum Foundation announced on February 27 that it had achieved test network scaling functionality. Moreover, we have achieved significant growth. Additionally, the network attracted 1.8 million new users. Santiment’s metrics monitoring shows that the number of addresses of ETH holders has increased to 115.5 million. In comparison, the number of Bitcoin wallet addresses decreased by 70,000 at the same time.
Ethereum is set to surpass $4,000 by March 2024, driven by increased demand for new ETH addresses and a $2.3 billion decline in exchange supply.
Meanwhile, it is reported that numerous issuers are delaying the SEC’s consent process for the spot Ethereum ETF.
The upcoming meeting between the SEC and ETF registrants is expected to provide a significant degree of clarity. Grayscale, Invesco Galaxy, BlackRock, and Franklin Templeton are among the companies that will be affected by the outcome of every decision.