Ethereum Foundation Dump – There Ethereum Foundation is a non-profit organization with a mission to support the development of the Ehereum network. To do this, the RU has cash that it allocates to the various projects.
The Ethereum Foundation resells $30 million in ETH
On May 6, several observers identified a outgoing transaction from one of the Ethereum Foundation wallets. In practice, via this transfer the latter to sent no less than 15,000 ETH to the Kraken exchange.
Transaction carried out by the Ethereum Foundation – Source: Etherscan.
Obviously, this transfer caused a wave of reaction. Of many internet users have been preparing for a potential fall in the price of ETH.
A self-fulfilling situation then occurred. In effect, ETH price fell 4.8% to $1,900. However, the decline was negligible due to a general trend of market recovery. On May 7, the price of ETH rallied slightly to $1,920.
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Has the Ethereum Foundation lost its mind?
Obviously, many Internet users wondered if this maneuver was clever on the part of the FE? Indeed, many have fears that Kraken will not be able to absorb this sale in terms of cash.
An increase in the trade balance indicates potential selling pressure and vice versa. In the case of Ethereum, the balance remained lower across all exchanges despite the transfer of $30 million from the Ethereum Foundation to Kraken.
For example, Kraken’s Ether balance dropped from 1.83 million ETH to 1.84 million ETH on May 6. However, the total trade balance has actually decreaseddropping from 18.22 million ETH to 18.15 million ETH on the day, suggesting that any potential selling pressure from the Ethereum Foundation could be easily absorbed.
The last big transfer from the Ethereum Foundation was in November 2021, with 20,000 ETH, when the price hit around $4,850 before dropping 80% in the following months. Likewise, the foundation had sold 35,053 ETH at the local market high of around $3,500 in May 2021.
Some analysts interpreted these events as a sign of a possible formation of a new market high near $2,000believing that the price could decline in the coming sessions.
However, broader data suggests otherwise. Thus, the Ethereum Foundation also sold during the 2020-2021 bull cycle, when the price was not at a local maximum.
For its part, after the deployment of Shanghai the network Ethereum is preparing for the next hard fork: Cancun. This one will focus on rollups and their improvement.
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