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The recent series of transfers by the Ethereum Foundation to the multisign address "0xbc9" has caught the attention of market observers, sparking concerns about potential volatility in Ethereum's price.
In the latest transaction reported by Spot On Chain, the foundation moved 1,000 ETH, valued at $3 million, to the aforementioned address. This action is part of a larger trend, as the foundation has already transferred a total of 5,000 ETH to the same address since the beginning of 2024.
What is notable about these transfers is their potential impact on the market. Analysis reveals that a considerable portion of the previously transferred ETH — 1,766 ETH — has been promptly sold for 4.81 million DAI, averaging $2,725 per ETH. Interestingly, these sales often coincide with a decline in Ethereum's price.
Indeed, historical data indicates a correlation between the Ethereum Foundation's sell-offs and downward pressure on ETH's price. With the multisign address "0xbc9" currently holding 2,508 ETH, equivalent to $7.51 million, market participants are cautious about the implications for Ethereum's value.
The current market environment adds to the apprehension, with Ethereum trading below $3,000 per coin and struggling to breach the $3,300 resistance level. As a result, there is speculation about whether the foundation's actions could exacerbate the downward trend, potentially leading to a drop in ETH's price to $2,400.
As the crypto community braces for what lies ahead, all eyes remain glued to Ethereum's price chart, awaiting clues about the next move of the main altcoin.