Ethereum Foundation Moves 1,000 ETH – Is The Top In?

The
Ethereum
Foundation,
a
non-profit
organization
that
supports
the
Ethereum
ecosystem,
recently
transferred
a


significant
amount
of
ETH.
Given
what
this
transaction
could
imply,
it
has
drawn
the
crypto
community’s
attention,
which
is
already
speculating
about
whether
the
market
top
might
be
in. 

Ethereum
Foundation
Moves
1,000
ETH

On-chain
analytics
platform
SpotOnChain

revealed
in
an
X
(formerly
Twitter)


post

that
the
Ethereum
Foundation
transferred
1,000
ETH
($3
million)
to
a
middle
multi-signature
wallet
(0xbc9)
on
May
8.
This
development
is
more
concerning
as
SpotOnChain
revealed
that
the
Foundation
has
made
other
transactions
since
the
start
of
2024.

Related
Reading

According
to
the
platform,
the


Ethereum
Foundation

has
sold
1,766
ETH
for
4.81
million
DAI
at
an
average
price
of
$2,725
for
each
ETH.
These
transactions
are
said
to
have
occurred
in
“several
small
batches
via
the
same
multi-signature
wallet.
Interestingly,
SpotOnChain
noted
that
these
transactions
often
occur
ahead
of
a
price
drop.  

It
is
worth
mentioning
that
the
Ethereum
Foundation


already
has
a
reputation

for
selling
at
the
top,
suggesting
that
their
selling
ahead
of
a
drop
might
not
be
a
coincidence.
In
2022,
NewsBTC
reported
that
Ethereum
dropped
by
40%
after
the
Foundation
sold
off
20,000
ETH.
Meanwhile,
in
2021,
ETH
experienced
a
downtrend
for
months
after
the
organization
sold
off
35,000
ETH. 

ETH’s price action after the Ethereum Foundation sold 20,000 ETH in 2022 | Source: Tradingview.com

Journalist
Colin
Wu
also


revealed

back
then
that


Ethereum’s
founder,
Vitalik
Buterin,
had
persuaded
the
foundation
to
“sell
70,000
ETH
at
the
top
of
2018
to
support
the
work
of
developers.”
Wu
further
claimed
that
the
Foundation’s
sell-off
is
a
“normal
operation,
but
it
also
means
that
the
Foundation
thought
that
bear
market
was
coming.”

Therefore,
from
Wu’s
revelation,
one
can
deduce
that
the
Ethereum
Foundation
could
have
an
idea
of
when
the
market
top
is,
which
prompts
them
to
always
make
these
sales
before
ETH
makes
a


significant
decline. 

An
ETH
Decline
May
Already
Be
On
The
Horizon

A
crypto
analyst
known
as
Shin
Forex
recently


predicted

that
Ethereum
could
soon
drop
to
as
low
as
$2,500.
The
analyst
explained
that
there
has
been
a
slowdown
in
liquidity
flowing
into
the
Ethereum
ecosystem.
This
could
affect
ETH’s
price
since
it
suggests
a
lack
of
interest
in
the
token
among
investors. 

Related
Reading

From
a
technical
analysis
perspective,
Shin
Forex
also
revealed
that
the


ETH/BTC
pair

has
now
broken
below
its
support
of
0.05.
Ethereum
is
said
to
have
experienced
a
significant
crash
when
this
happened
in
the


market
cycles

in
2016
and
2019.
As
such,
the
analyst
does
not
doubt
that
ETH
will
likely
spiral
down
again,
with
the
crypto
token
dropping
to
as
low
as
$2,500. 

At
the
time
of
writing,
Ethereum
is
trading
at
around
$3,000,
according
to


data

from
CoinMarketCap. 

ETH price looking to establish support above $3,000 | Source: ETHUSD on Tradingview.com

Featured
image
from
The
Motley
Fool,
chart
from
Tradingview.com