Ethereum Price Drops as Foundation Liquidates Holdings
Ethereum Slumps Following Foundation’s ETH Sale
Tuesday saw a significant drop in the price of Ethereum (ETH), with CoinMarketCap reporting a 2.9% decrease to $1,577. This decline comes after the Ethereum Foundation (EF) traded 1,700 ETH into Circle’s USDC, according to data from Scopescan. The EF’s sale is believed to have been conducted to cover operational expenses and fund independent projects and grants.
Market Sentiment Polarized by EF’s Transaction
The EF’s recent transaction has stirred market sentiment and led to increased polarization within the crypto community. Additionally, Ethereum’s fee levels have reached their lowest point this year, and the digital currency is testing the $1,550 mark, which some analysts interpret as an indication of an impending market turnaround.
EF’s Financial Statement and Current Holdings
The EF’s financial statement revealed that as of April 2022, it held approximately 395,000 ETH, accounting for 0.297% of Ethereum’s total supply. Following the recent sale, the foundation now holds 316,488 ETH, valued at $502.7 million. Ethereum represents 99.1% of the EF’s crypto holdings, excluding the recent sale.
EF’s Influence on Market Movements
Historically, large transactions by the EF have influenced market movements. For example, in May 2023, a transfer worth $28.5 million to Kraken coincided with price peaks. Similarly, during that month, Ethereum experienced a seven-month high in social dominance.
Future of Digital Assets Event and Ethereum’s Potential Turnaround
These developments will be further discussed at Benzinga’s Future of Digital Assets event. Meanwhile, Santiment predicts an imminent Ethereum turnaround due to its lowest fee levels of 2023 and heightened trader impatience amid a market-wide drop.
This article offers comprehensive insights on Ethereum’s recent price drop following the Ethereum Foundation’s sale of ETH. It analyzes the impact on market sentiment, provides details on the foundation’s current holdings, and highlights historical market trends influenced by the EF’s transactions. Furthermore, it previews the upcoming Future of Digital Assets event and presents Santiment’s prediction of an imminent Ethereum turnaround.
