The Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, recently made a high-value transfer of ETH, sparking speculation within the crypto community. On May 8, the Foundation transferred 1,000 ETH ($3 million) to a middle multi-signature wallet (0xbc9), according to the on-chain analytics platform SpotOnChain. This transfer is part of a series of transactions initiated by the Foundation in 2024, raising concerns among investors.
SpotOnChain highlighted that the Ethereum Foundation has previously sold 1,766 ETH for 4.81 million DAI at an average price of $2,725 per ETH in various small batches through the same multi-signature wallet. Interestingly, these transactions often precede a market price drop. The Foundation has a history of selling ETH at market tops, with instances in 2022 and 2021 where significant sell-offs were followed by price declines of 40% and prolonged downtrends, respectively.
Journalist Colin Wu reported that Ethereum founder Vitalik Buterin had encouraged the Foundation to sell 70,000 ETH at the peak of 2018 to fund developer work. Wu suggested that the Foundation’s sell-offs signal their anticipation of a bear market, indicating a possible foresight into market tops. This information raises questions about the Foundation’s strategic selling practices and their implications on ETH’s price movements.
Crypto analyst Shin Forex forecasted a potential drop in Ethereum’s price to as low as $2,500 due to a slowdown in liquidity inflow to the ecosystem. This decreased interest among investors could impact ETH’s market value. Additionally, Shin Forex highlighted that the ETH/BTC pair breaking below its critical support level of 0.05 could trigger a significant market crash, citing past instances from market cycles in 2016 and 2019.
The Ethereum Foundation’s recent transfers, coupled with past selling patterns and analyst predictions, suggest a possible correlation between their actions and market tops. Investors should closely monitor these developments and consider the potential impact on Ethereum’s price trajectory in the coming days.