The Ethereum Foundation just sold $30M in Ether — But will ETH price fall this time?
On May 6, Ethereum Foundation transferred nearly $30 million in Ether (ETH) to the Kraken cryptocurrency exchange, causing jitters in the market about a sell-off event. Despite the transfer, the decline was negligible, and the Ether’s price has recovered to $1,920 on May 7 after testing its 50-day exponential moving average (50-day EMA; the red wave) near $1,850 as support a day ago. Test claims that the 50-day EMA has capped Ether’s downside attempts but has prompted the ETH price to pursue a breakout above $2,000 in some instances.
Even with a larger decline, ETH would be maintaining its overall recovery trend when measured from its June 2022 bottom of $880, and the balance across all exchanges actually dropped to 18.15 million ETH from 18.22 million ETH on the day, indicating that any potential sell-pressure from the Ethereum Foundation can easily be absorbed.
The Ethereum Foundation’s last significant transfer of ETH was in November 2021 when the price toppled around $4,850 and declined by 80% thereafter, and the Foundation sold 35,053 ETH at the local market top of $3,500 in May 2021. However, broader data suggests otherwise. For instance, Ethereum Foundation’s large ETH sales occurred during the 2020-2021 bull cycle boosted by growing demand for risk-on assets in a lower interest-rate macro environment.
Therefore, there’s little evidence to suggest that the Ethereum Foundation’s sales have any impact on Ethereum’s price trend. Instead, the cryptocurrency market is currently taking cues from the US banking crisis and whether this will force the Federal Reserve to stop hiking and cut interest rates.
In conclusion, the recent transfer of $30 million in ETH by the Ethereum Foundation has caused jitters in the market, but the decline has been negligible. Despite some claims that Ethereum Foundation’s sales have any impact on Ethereum’s price trend, broader data suggests otherwise. The demand for risk-on assets in a lower interest-rate macro environment is a significant factor that has influenced large ETH transfers by the Ethereum Foundation.
According to https://cointelegraph.com/news/the-ethereum-foundation-just-sold-30m-in-ether-but-will-eth-price-fall-this-time
The material in this article is written on the basis of another article.