According to the blockchain data analysis platform Arkham Intelligence, the price of Ethereum once increased by over 500% in the months following a major Ethereum sale by the Ethereum Foundation, but it is impossible to say what will happen this time. The Ethereum Foundation sold at the peak both in May and November 2021. However, Arkham shared in a post on X on August 25 that the foundation sold 100,000 Ethereum just before Ethereum increased sixfold in 2020.
What Is Happening on the Ethereum Front?
This occurred when the Ethereum Foundation sent approximately 35,000 Ethereum worth about $96 million to a wallet identified as a Kraken exchange deposit address on August 23. Arkham's data shows that the Ethereum Foundation sold approximately 100,000 Ethereum worth about $63 million at a price of around $635 on December 17, 2020.
Five months later, on May 12, 2021, the price rose to $4,182. Later that year, on November 10, it reached a cycle peak of $4,891.70. The Arkham team shared the following statements on the matter:
âLast night, they sent another 35,000 Ethereum worth $95 million to Kraken. Did they get it right this time?â
Amid speculation regarding the transfer, Ethereum Foundation Executive Director Aya Miyaguchi shared on X that this was part of treasury management activities. Miyaguchi stated in an X post that the transfer was to help balance the books and did not equate to a sale.
According to Miyaguchi, the Ethereum Foundation has an annual budget of $100 million, consisting of grants and salaries, but some only accept payments in fiat currencies. The notable figure shared the following statements on the matter:
âThis year, we were advised for a long time not to conduct any treasury activities due to regulatory complications, and we could not share the plan in advance.â
Details on the Matter
The price of Ethereum has remained mostly stable over the past few days. On August 24, Ethereum reached its lowest point, hovering around $2,656 before rising to $2,808 the next day, and stabilizing around $2,743 as of August 26. This latest transfer occurred a month after a wallet associated with the Ethereum Foundation transferred approximately 92,000 Ethereum worth over $253 million at current prices to an unidentified wallet.
Until then, the address had not moved for seven years, and the foundation has yet to publicly disclose who was responsible for the transfer and why. On May 6, 2023, the Ethereum Foundation conducted another significant transaction by transferring approximately $30 million worth of Ethereum to Kraken.
The price fell by 4.8% that day, dropping to $1,900, but the decline was insignificant amid a broader recovery trend at the time. According to Arkham, the Ethereum Foundation still holds approximately 273,000 Ethereum, valued at over $751 million at current prices.
