Ethereum Foundation’s Massive ETH Sale in 2024
Spot on Chain, an on-chain analytics firm, reported that the Ethereum Foundation, dedicated to funding crucial developments on the Ethereum network, has been gradually selling portions of its holdings. The EF recently sold 2516 ETH for $7.4 million DAI, marking a significant divestment strategy over the past few months.
The largest sale transaction of the year occurred last Friday when the Ethereum Foundation deposited 35,000 ETH, equivalent to $93.8 million, on the Kraken exchange. Such massive whale transactions often signal potential shifts in the crypto market’s direction, drawing attention to possible future trends.
Impact of Rate Cuts and Price Surges
Rate cuts, announced by US Federal Reserve Chairman Jerome Powell, typically lead to reduced interest rates, allowing investors to consider more high-risk assets like cryptocurrencies. Powell’s signals of an upcoming rate cut of 30-50bps have created positive expectations within the crypto market, including for ETH’s performance.
- The recent surge in prices can mitigate the impact of the imminent expiration of 140,000 ETH options.
- Current ETH price ($2750) surpasses the maximum pain point of these expiring options at $2625, potentially limiting financial losses.
The Ethereum Foundation still holds a substantial amount of 273,273.96 ETH valued at $754.76 million, indicating a continued belief in Ethereum’s potential despite recent sales.
ETH Price Update
Following the recent price surge, Ethereum is now trading at $2750. However, long-term traders may anticipate a sustained upward momentum as the altcoin is still down by 20.48% on the monthly chart.
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