Ethereum Foundation Calms Bearish Concerns, Explains Reason For $94 Million ‘Selloff’

As a seasoned crypto investor with years of market navigation under my belt, I have seen my fair share of rumors and speculations that often turn out to be mere hearsay. However, this recent ETH transfer by the Ethereum Foundation has got me scratching my head. Initially, it did look like a cause for concern, but upon closer inspection, it seems like a simple case of managing the organization’s treasury.


Recently, an individual from the Ethereum Foundation has spoken to investors about their concerns that arose following a significant Ethereum transfer made by the non-profit organization on Friday. This action is significant because it led to discussions of a bearish nature within the crypto community, partly due to the Ethereum Foundation’s ties to the Ethereum network.

$94 Million ETH Transfer Not A Selloff – Ethereum Foundation

On a Friday, the Ethereum Foundation transferred 35,000 Ether, equivalent to around $93.8 million, into the Kraken exchange. This action sparked conjecture within the ETH community, with doubts arising from the potentially bearish implications of such large transactions and the influence of the Ethereum Foundation in the Ethereum ecosystem.

As a researcher studying the digital currency landscape, I find myself highlighting the significant part played by the Ethereum Foundation (EF) in driving technological advancements within the Ethereum network. Consequently, any sudden, substantial sale of ETH by this organization is likely to spark curiosity and interest among investors and the wider cryptocurrency community.

In a post over the weekend, Aya Miyaguchi, Executive Director of the Ethereum Foundation, clarified that the recent transaction was not a sale, but rather a part of managing the organization’s financial resources. According to Miyaguchi, the ETH deposited on Kraken was exchanged for fiat currency to meet specific commitments. Furthermore, Miyaguchi attributed the large ETH withdrawal to restrictions on treasury activities due to regulatory issues in the past.

Miyaguchi said: 

As a researcher, I’m sharing some insights about our organization, EF. Our annual budget, approximately $100m, is primarily composed of grants and salaries. However, it’s important to note that some of these funds are only receivable in traditional fiat currency.

Prior to the 35,000 Ether transfer to Kraken, I’ve noticed that the Ethereum Foundation had been steadily selling substantial amounts of Ether in the year 2024, with a transaction amounting to 2,516 Ether worth approximately $7.4 million DAI. Aya Miyaguchi has made it clear that this consistent Ether selloff will continue in a calculated and gradual fashion.

ETH Price Overview

Based on CoinMarketCap’s figures, ETH is currently exchanging hands at around $2,748 and has seen a minor increase of 0.63% over the past day. The second-largest cryptocurrency finds itself in a market where it fluctuates between approximately $2500 and $2800. If Ethereum’s bullish supporters manage to gain control, there’s potential for ETH to break free from this consolidation, with its primary resistance lying at $3560. On the other hand, if a bearish trend emerges, intense selling could force the price of Ethereum down to around $2100.

Ethereum Foundation Calms Bearish Concerns, Explains Reason For $94 Million ‘Selloff’

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2024-08-25 13:11