Ethereum Foundationa non-profit organization that supports the Ethereum ecosystem, recently transferred Ethereum. A significant amount of ETH. Considering what this transaction means, it has caught the attention of the cryptocurrency community and is already speculating whether it could become a market leader.
Ethereum Foundation moves 1,000 ETH
On-chain analysis platform SpotOnChain Published on X (formerly Twitter) post The news is that the Ethereum Foundation transferred 1,000 ETH ($3 million) to an intermediate multi-signature wallet (0xbc9) on May 8th. This development is even more concerning since SpotOnChain revealed that the foundation has made other transactions since early 2024.
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According to the platform: Ethereum Foundation 1,766 ETH were sold for 4.81 million DAI, with an average price of $2,725 per ETH. These transactions “allegedly occurred in multiple small batches through the same multi-signature wallet. Interestingly, SpotOnChain noted that these transactions often occur before price drops.
The Ethereum Foundation is worth mentioning. already has a good reputation This suggests that selling before the decline may 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 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.comReporter Colin Wu also exposed then that Ethereum founder Vitalik Buterin, persuaded the foundation to “sell 70,000 ETH at the end of 2018 to support the work of developers.” Wu also argued that the foundation’s sale was “normal operation, but it also meant that the foundation thought a bear market was coming.”
Therefore, from Wu’s revelations, we can infer that the Ethereum Foundation may have an idea of when the market highs will be, which could always lead them to make these sales before ETH takes profits. significant reduction.
An ETH decline may already be on the horizon.
Cryptocurrency analyst recently known as Shin Forex predicted Ethereum could soon fall to $2,500. The analyst explained that liquidity flowing into the Ethereum ecosystem is slowing down. This could impact the price of ETH as it suggests a lack of interest in the token among investors.
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From a technical analysis perspective, Synforex also stated: ETH/BTC pair It has now fallen below the support level of 0.05. Ethereum reportedly experienced a serious crash when this happened. market cycle Therefore, the analyst has no doubts that ETH will trend lower again and the cryptocurrency token will fall to $2,500.
At the time of this writing, Ethereum is said to be trading at around $3,000. data From CoinMarketCap.
ETH price looking to establish support above $3,000 | Source: ETHUSD on Tradingview.com
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