An Ethereum wallet belonging to the Ethereum foundation has just transferred 15,000 ETH to a Kraken deposit address.
Almost simultaneously, one of Vitalik Buterin’s personal addresses moved a further 200 ETH to the exchange.
Is ETH Price About to Fall?
The first transaction, valued at just shy of 30 million USD at the time of writing, has fueled speculation as to why the foundation is on the move.
The Ethereum Foundation has previously reported that it holds around 0.297% of the total ETH supply. At today’s market cap, that would put the value of the foundation’s ETH holdings at nearly 700 million USD.
In total, the foundation said that ETH accounts for 80.5% of its crypto and non-crypto holdings.
Many have quickly pointed out that previous large-scale ETH selloffs by the foundation have preempted market downturns.
ETH Foundation Times the Market
In November 2021, the foundation sold a cache of 20,000 ETH worth around $9.5 billion. This was swiftly followed by a major price correction as the market accommodated the increased circulation.
In hindsight, it also coincided with the beginning of the 2021 ETH bear market.
In fact, such selloffs by the foundation have long been connected to peaks in the ETH price cycle. And for followers of the market, both the foundation and its co-founder Buterin are closely watched for the timing of their sales, which have often been on the money.
Consider that in 2019, Buterin said in an interview that he had convinced the foundation to sell 70,000 ETH “basically at the top” of its price range at the time. He added that the decision had paid off and had allowed the foundation to double its funding runway.
Selloff Tops Otherwise Bullish Week for ETH
Of course, the news that the Ethereum Foundation is liquidating some of its assets doesn’t necessarily mean the price of ETH is about to tank.
On Saturday morning, there were no signs of any major turmoil in the market. And Ethereum bulls
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Author: James Morales
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