Ethereum Foundation Transfers 94 Million ETH – Price Rally To Stall?
August 24 2024 - 9:30AM
NEWSBTC
Following affirmative comments of an impending rate cut by US
Federal Reserve Chairman Jerome Powell, Ethereum (ETH) alongside
other crypto assets experienced a rapid price gain with the total
crypto market cap rising by 6% on Friday. The price of Ethereum in
particular moved upward by 6.38% to nearly breach the $2800 price
mark. However, amidst this crypto market raving with bullish
sentiments, the Ethereum Foundation (EF), a non-profit organization
committed to supporting the Ethereum network, has offloaded a
substantial amount of ETH. Related Reading: Ethereum Analyst: Bulls
Must Hold $2,500, Spot ETF To Catalyze Demand Ethereum Foundation
Executes Largest ETH Sale Of 2024 According to on-chain analytics
firm, Spot on Chain, the EF, which is devoted to financing critical
developments on the Ethereum network, has been selling small
amounts of its holdings in the last few months culminating in 2516
ETH for $7.4 million DAI. On Friday, the Ethereum Foundation
executed its largest sale transaction of 2024 depositing 35,000 ETH
worth $93.8 million on the Kraken exchange. Generally, whale
transactions of this size usually draw much attention as they are
indicative of the market’s next likely movement. In
particular, this latest transaction by the Ethereum Foundation has
been highly speculative, due to the direct affiliation of the
organization with the Ethereum network, with some ETH enthusiasts
interpreting such a sale as a bearish signal. Notably, in the last
few hours following the sale, ETH has experienced a slight decline
of 1.3%. However, general market sentiment remains largely bullish
with an anticipated rate cut by the Fed in September. Rate cuts, an
inverse of rate hikes, mean lower interest rates which allow
investors to acquire more volatile assets such as cryptocurrencies.
Following Powell’s announcement on Friday, experts are predicting a
rate cut of 30-50bps which could exert relatively positive effects
on the crypto market including ETH. Moreover, the recent price
surge may help reduce the effect of the immediate expiry of 140,000
ETH options. This is because the assets’ current price ($2750) is
far above the max pain point of these options at $2625, i.e.
maximum financial losses would occur if the time of option
expiration occurred at this market price. Finally, the Ethereum
Foundation still retains a large horde of 273,273.96 ETH valued at
$754.76 million. Their most recent market transaction, while
significant, does not indicate a lack of confidence in Ethereum.
Related Reading: Bitcoin Poised for a 200% Rally as Analyst Spot
Rare Bullish Pattern ETH Price Overview As earlier stated, Ethereum
trades at $2750 following the price boost on Friday. However,
long-term traders will be highly expectant of a sustained price
rally, as the altcoin still lags by 20.48% on its monthly
chart. Featured image from Investopedia, chart from
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