Ethereum Foundation Moves 1,000 ETH - Is The Top In?

The Ethereum Foundation, a non-profit organization that supports the Ethereum ecosystem, recently transferred a significant amount of ETH. Given what this transaction could imply, it has drawn the crypto community's attention, which is already speculating about whether the market top might be in.

Ethereum Foundation Moves 1,000 ETH.

On-chain analytics platform SpotOnChain revealed in an X (formerly Twitter) post that the Ethereum Foundation transferred 1,000 ETH ($3 million) to a middle multi-signature wallet (0xbc9) on May 8. This development is more concerning as SpotOnChain revealed that the Foundation has made other transactions since the start of 2024.

According to the platform, the Ethereum

Foundation has sold 1,766 ETH for 4.81

million DAI at an average price of $2,725

for each ETH. These transactions are said

to have occurred in "several small

batches via the same multi-signature

wallet. Interestingly, SpotOnChain noted

that these transactions often occur ahead of a price drop.

It is worth mentioning that the Ethereum Foundation already has a reputation for selling at the top, suggesting that their selling ahead of a drop might not be a coincidence. In 2022, NewsBTC reported that Ethereum dropped by 40% after the Foundation sold off 20,000 ETH. Meanwhile, in 2021, ETH experienced a downtrend for months after the organization sold off 35,000 ETH.

Journalist Colin Wu also revealed back then that Ethereum's founder, Vitalik Buterin, had persuaded the foundation to "sell 70,000 ETH at the top of 2018 to support the work of developers." Wu further claimed that the Foundation's sell-off is a "normal operation, but it also means that the Foundation thought that bear market was coming."

Therefore, from Wu's revelation, one can deduce that the Ethereum Foundation could have an idea of when the market top is, which prompts them to always make these sales before ETH makes a significant decline.