Why did the foundation flip the coin? ! ! I dug out what V God said in 2019! ! !
This is not the first time the Ethereum Foundation has conducted large-scale ETH transactions and resulted in significant market changes. To recall, on May 6, 2023, a huge transfer of 15,000 ETH marked the peak of ETH price and subsequent decline. Similar significant trades occurred in the foundation on November 11, 2021, and in May 2021, with the latter causing a sharp price drop from over $3,500 to approximately $1,825.
Historical data shows that Ethereum Foundation outflows often coincide with local price peaks. Oddly, in the hours after the latest $2.73 million outflow, ETH price had moved 2%, falling below the important $1,600 support level.
If the bearish trend following the $30 million trade resumes, ETH price could fall towards $1,500 in the coming weeks.
Ethereum exchange network traffic recently reached a 5-month peak
A closer look at the on-chain data reveals that just days before the Ethereum Foundation moved 1,700 ETH to Kraken, net ETH transaction flow reached a five-month peak.
On October 3, Ethereum inflows to cryptocurrency exchanges exceeded outflows by 79,000 ETH. The IntoTheBlock chart below also shows that the last time ETH inflows to exchanges exceeded outflows was in May.
This highlights the growing bearish sentiment across the Ethereum ecosystem.
But I would like to remind everyone that the last peak in May was only 1.5wETH, and this time it was only 1.7k. The 10 times faster magnitude does not mean anything. A rebound is very likely to be imminent, but you need to be cautious when selling short or long.
