Ethereum Foundation Transfers 94 Million ETH—Price Rally to Stall?

Ethereum (ETH) and other crypto assets rose 6% on Friday after US Federal Reserve Chairman Jerome Powell signaled a rate decrease. Ethereum rose 6.38% to over $2800. Despite the optimistic crypto market, the Ethereum Foundation (EF), a non-profit that supports Ethereum, has sold a lot of ETH.

Ethereum Foundation Conducts 2024 Largest ETH Sale
Spot on Chain reports that the EF, which funds essential Ethereum network projects, has been selling tiny chunks of its assets in recent months, culminating in 2516 ETH for $7.4 million DAI.

Friday saw the Ethereum Foundation deposit 35,000 ETH worth $93.8 million on Kraken, its highest selling transaction of 2024. Whale transactions of this scale frequently get notice because they predict the market's future move.

The Ethereum Foundation's newest auction has been particularly speculative owing to its direct relationship with the Ethereum network, with some ETH aficionados seeing it as a pessimistic indication. ETH has dropped 1.3% in the hours after the sale.

An expected September Fed rate decrease keeps market mood positive. Lower interest rates encourage investors to buy volatile assets like cryptocurrency. After Powell's statement on Friday, analysts expect a 30-50bps rate drop, which might boost ETH.

The latest price spike may also mitigate the quick expiration of 140,000 ETH options. The assets' current price ($2750) is much beyond the max pain point of these options at $2625, meaning maximum financial losses would occur at option expiry at this market price. Finally, the Ethereum Foundation has 273,273.96 ETH worth $754.76 million. Although noteworthy, their last market transaction does not show a lack of faith in Ethereum.

After Friday's price surge, Ethereum trades at $2750. Long-term traders foresee a steady price increase because the cryptocurrency is still 20.48% behind on its monthly chart.

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