News of the Ethereum Foundation depositing 35,000 ETH into crypto exchange, Kraken on Friday took the market by storm with community members seeking an explanation. However, Ethereum Foundation member Aya Miyaguchi cleared the air stating that the recent ETH movement was part of their treasury management activities.

Ethereum Foundation Clarifies Recent ETH Treasury Activities Amid Price Surge

In response to community concerns about a potential ETH sell-off, Aya Miyaguchi of the Ethereum Foundation provided insights into the Foundation’s treasury management. She revealed that the Foundation operates with an annual budget of approximately $100 million, primarily allocated for grants and salaries. Due to regulatory complexities this year, there was an extended advisory period against conducting treasury activities, leading to delays in announcing their plans.

Miyaguchi assured that the recent transaction of 35,000 ETH was not part of a sale, but rather a planned and gradual strategy moving forward. Despite concerns, this move didn’t create major sell-off pressure on ETH prices. In fact, ETH has been rallying to $2,750, driven by expectations of upcoming Fed rate cuts.

Technical analyst Benjamin Cowen noted that $ETH remains below its 20-week simple moving average, unlike Bitcoin and altcoins. However, with the Federal Reserve's potential rate cuts in the coming weeks, ETH might catch up, potentially repeating the rally patterns seen in previous years.

Meanwhile, Ethereum co-founder Vitalik Buterin emphasized the robustness of Ethereum’s Layer-1 network, highlighting its resilience with no single execution client holding more than two-thirds market share. This further solidifies Ethereum's strong foundation, despite concerns about the ecosystem.

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