- The Ethereum Foundation has piled on the pressure on Ethereum’s price.
- The Foundation’s move has sparked fears about forming a local ETH price top.
- ETH has continued to dip amid a broader market correction.
Crypto project teams selling tokens to fund operations are nothing new. However, it hardly ceases to spark concern. In the latest instance, a move from the Ethereum Foundation has sparked concerns about forming a local price top and beginning a price dump, particularly amid uncertain market conditions.
Ethereum Foundation on the Move
The Ethereum Foundation sold 700 ETH for about 1.7 million DAI in four transactions between 8:54 am UTC and 9:02 am UTC on Monday, January 22, per Etherscan data. The sum was later transferred to a “Grant Provider” address, potentially for distribution.
The Ethereum Foundation (0xd7…c1f4) sold 700 ETH on Cow Protcol between 16:54-17:05 UTC+8 at a price of $2,406 and exchanged it for 1,684,445 DAI. The DAI was then transferred to the Ethereum Foundation for funding disbursement. The address of Grant Provider: 0x9e…313D.…
— Wu Blockchain (@WuBlockchain) January 22, 2024
The move has stirred concerns within the crypto community, as selling by the Ethereum Foundation has often been linked to the formation of local market tops.
ETH did not react sharply to the sell-off, experiencing a mild decline from $2,420.61 to $2,417.63 around the transaction time. However, this price decline has continued amid a broader market correction.
ETH Sheds Recent Gains
At the time of writing, ETH is trading at around $2,320, down nearly 6% in the past 24 hours as it sheds gains that had seen it surpass the $2,600 price point on speculation that the SEC was set to approve spot Ethereum ETFs in May 2024.
The recent market correction follows concerns over significant outflows from Grayscale’s Bitcoin ETF, which have placed downward pressure on the BTC price.
On Sunday, January 21, prominent analyst Ali Martinez warned that ETH risked a pullback to the $2,000 price level if it failed to hold support at $2,388.
On the Flipside
- Ethereum’s price dip appears more linked to a broader market correction than the Ethereum Foundation’s sell-off.
- Experts have predicted that Ethereum will outperform Bitcoin in 2024.
Why This Matters
The move from the Ethereum Foundation potentially increases the selling pressure on ETH.
Read this for more on Ethereum’s recent dump:
Whales Pour XRP & ETH into CEXs, Triggering Altcoin Sell-off
Find out more about the oral arguments in the SEC case against Binance:
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