ETH Price Tanks 3.5% As Ethereum Foundation Offloads Another 1000 ETH

The $ETH price has once again come under strong selling pressure Ethereum Foundation continues the dreaded $ETH sell-offs. Earlier today, the Ethereum price dropped down to $2,325 levels with its market cap at $281 billion.

Ethereum Foundation Moves 1,000 $ETH to Multisig Wallet

A day after swapping 100 $ETH for $DAI stablecoins, the Ethereum Foundation has moved a total of 1,000 Ethereum again to a multi-signature wallet.

The latest data from LookonChain shows that the Ethereum Foundation has transferred 1,000 $ETH, valued at approximately $2.38 million. The transfer was made to a multi-signature wallet labeled “0xbC9a” a few hours before.

Based on previous transactions by the Ethereum Foundation, it’s likely that the $ETH in this wallet will be transferred to another wallet, “0xd779.” Here it will likely be swapped for $DAI, which is a stablecoin. This move follows similar patterns in recent transactions by the Foundation. This sell-off news from the Foundation has also put the $ETH price under pressure.

Addressing these community concerns, the Ethereum Foundation is soon planning to release a report said Ethereum researcher Justin Drake.

Ethereum Subreddit Reveals This

In the AMA session in the r/Ethereum subreddit, Justin Drake stated that as per his understanding, the Ethereum Foundation spends $100 million every year on operations. They hold $650 million worth of funds in the $ETH wallet. He said that the Foundation still has a 10-year runway based on the current $ETH price and that there’s no need to panic.

Commenting in the same subreddit, Ethereum co-founder Vitalik Buterin wrote:

“The current approximate budget strategy is to spend 15% of our remaining money every year. This implies a default path where the EF lasts forever but gets smaller and smaller (as a share of the ecosystem) over time.”

However, just last month, the Ethereum Foundation transferred $94 million worth of $ETH to the crypto exchange Kraken. Then why is it continuing to sell further despite being close to yearly targets? This series of unexplained large $ETH movements has to strong criticism and negative feedback from the Ethereum community.

On the other hand, Ethereum co-founder Vitalik Buterin has been moving a large number of Starknet (STRK) tokens raising the speculations of sell-off in the community. In his recent post, Vitalik Buterin clarified that he would continue to sell its Layer-2 token holdings for purposes such as boosting the growth of the Ethereum ecosystem or for charity.

$ETH Price Remains Under Pressure

Amid the continuous sell-off news by the Ethereum Foundation, the $ETH price continues to face further selling pressure. Additionally, macro uncertainty and weakness in the US jobs data are also contributing to further downside. On the weekly chart, the $ETH price has lost more than 7% after facing strong rejection at $2,550. Market analysts believe that $ETH can take support at $2,200 before resuming the uptrend.

On the other hand, spot $ETH ETFs have led to greater disappointment while seeing a major drop in demand within a month of fall. Many market analysts stated that the exchange-traded funds (ETFs) will be positive for liquidity.

Since the introduction of Ethereum ETFs, the average 5% market depth for $ETH pairs on U.S.-based centralized exchanges has fallen by 20%, now sitting at approximately $14 million. On offshore centralized exchanges, the market depth has decreased by 19%, down to around $10 million.