The Ethereum Foundation, a non-profit organization dedicated to supporting the Ethereum ecosystem, recently conducted a major transfer of ETH. This transaction has captured the attention of the crypto community, sparking speculation about whether this could signal a potential market peak. On-chain analytics platform SpotOnChain disclosed in a recent post on X (formerly Twitter) that the Ethereum Foundation moved 1,000 ETH (equivalent to $3 million) to a middle multi-signature wallet (0xbc9) on May 8. This transfer is particularly worrisome as SpotOnChain also revealed that the Foundation has executed other transactions since the beginning of 2024. According to SpotOnChain, the Ethereum Foundation has sold 1,766 ETH for 4.81 million DAI at an average price of $2,725 per ETH. These sales were reportedly carried out in multiple small batches through the same multi-signature wallet. Notably, SpotOnChain mentioned that these transactions have historically preceded a price decline.
The Ethereum Foundation has earned a reputation for selling ETH near market peaks, suggesting that their recent sales activities might not be coincidental. In previous instances, such as in 2022 and 2021, significant Etherum price drops followed after the Foundation sold off large amounts of ETH. Journalist Colin Wu also reported that Ethereum’s founder, Vitalik Buterin, had encouraged the Foundation to sell 70,000 ETH at the peak of 2018 to support developers’ work. Wu implied that the Foundation’s decision to sell off assets indicates their anticipation of an incoming bear market.
Crypto analyst Shin Forex recently forecasted a potential drop in Ethereum’s value to as low as $2,500. The analyst cited a reduction in liquidity entering the Ethereum ecosystem as a contributing factor to this projected decrease. This dwindling interest in the token among investors could impact Ethereum’s market price. From a technical analysis standpoint, Shin Forex highlighted that the ETH/BTC pair recently broke below a key support level of 0.05. Historically, Ethereum has experienced significant market downturns when this breach occurred in previous market cycles, specifically in 2016 and 2019. This technical observation adds weight to the argument for a potential price decline in Ethereum.
Overall, the Ethereum Foundation’s recent ETH transfers, combined with historical patterns and market analysis, have sparked concerns within the crypto community about a potential market top and subsequent price decline for Ethereum. Investors and enthusiasts alike are advised to proceed with caution and closely monitor market developments to make informed decisions regarding their ETH holdings.
Leave a Reply