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The price of Ethereum (ETH) is currently on a downward spiral, coinciding with noticeable on-chain transactions from the Ethereum Foundation.
According to data from crypto intelligence provider Arkham Intelligence, the Ethereum Foundation has sold off 700 ETH in at least three transactions via the Cow Protocol. The Foundation used the proceeds to stack up about $1.68 million worth of DAI.
gm
The Ethereum Foundation just sold $1.6M of ETH again.
devs, please do something.https://t.co/lmwp4RdrSN pic.twitter.com/oa4SKytuP0
— Arkham (@ArkhamIntel) January 22, 2024
Though the monetary equivalent is small, the selloff moves, coupled with the broader bearish market sentiment are gradually fueling a downward spiral in the price of Ethereum.
At the time of writing, the digital currency has dropped by 4.09% in the past 24 hours to $2,372.55, bringing its 7-day cumulative loss to 6.72%.
The Ethereum Foundation Transfers
Per the data, the Ethereum sold was moved in three different transactions via the wallet address “0xd7793..”
The Ethereum was sold off at an average price of $2,406, involving three different sessions of 200 ETH transfer. A 100 ETH transfer was also made to complete the latest moves.
Transactions like this often leave room for speculation. While a selloff is a knee-jerk reaction to the move, on-chain data revealed that the funds were indeed moved to an address where they can be used for funding disbursements.
As reported earlier, this is not the Ethereum Foundation’s first rodeo in liquidating Ethereum. According to data from Spot on Chain, the organization has moved a total of 800 ETH for $1.937 million DAI at an average price of $2,422.
Web3 Firms and Internal Transfers: the New Trend
While the Ethereum Foundation’s fund movement has spooked members of the community, it is worth noting that blockchain payments firm Ripple Labs Inc. is also known to move significant XRP around month-on-month.
Though different explanations are tied to some of these transactions, they are ideal for running functional Web3 firms and the trend might not taper down anytime soon.