The ETH price has once again come under strong selling pressure Ethereum Foundation continues the dreaded ETH sell-offs. Earlier today, the Ethereum price dropped down to $2,325 levels with its market cap at $281 billion.
Ethereum Foundation Moves 1,000 ETH to Multisig Wallet
A day after swapping 100 ETH for DAI stablecoins, the Ethereum Foundation has moved a total of 1,000 Ethereum again to a multi-signature wallet.
The latest data from LookonChain shows that the Ethereum Foundation has transferred 1,000 ETH, valued at approximately $2.38 million. The transfer was made to a multi-signature wallet labeled “0xbC9a” a few hours before.
Based on previous transactions by the Ethereum Foundation, it’s likely that the ETH in this wallet will be transferred to another wallet, “0xd779.” Here it will likely be swapped for DAI, which is a stablecoin. This move follows similar patterns in recent transactions by the Foundation. This sell-off news from the Foundation has also put the ETH price under pressure.
Addressing these community concerns, the Ethereum Foundation is soon planning to release a report said Ethereum researcher Justin Drake.
Ethereum Subreddit Reveals This
In the AMA session in the r/Ethereum subreddit, Justin Drake stated that as per his understanding, the Ethereum Foundation spends $100 million every year on operations. They hold $650 million worth of funds in the ETH wallet. He said that the Foundation still has a 10-year runway based on the current ETH price and that there’s no need to panic.
Commenting in the same subreddit, Ethereum co-founder Vitalik Buterin wrote:
“The current approximate budget strategy is to spend 15% of our remaining money every year. This implies a default path where the EF lasts forever but gets smaller and smaller (as a share of the ecosystem) over time.”
However, just last month, the Ethereum Foundation transferred $94 million worth of ETH to the crypto exchange Kraken. Then why is it continuing to sell further despite being close to yearly targets? This series of unexplained large ETH movements has to strong criticism and negative feedback from the Ethereum community.
On the other hand, Ethereum co-founder Vitalik Buterin has been moving a large number of Starknet (STRK) tokens raising the speculations of sell-off in the community. In his recent post, Vitalik Buterin clarified that he would continue to sell its Layer-2 token holdings for purposes such as boosting the growth of the Ethereum ecosystem or for charity.
ETH Price Remains Under Pressure
Amid the continuous sell-off news by the Ethereum Foundation, the ETH price continues to face further selling pressure. Additionally, macro uncertainty and weakness in the US jobs data are also contributing to further downside. On the weekly chart, the ETH price has lost more than 7% after facing strong rejection at $2,550. Market analysts believe that ETH can take support at $2,200 before resuming the uptrend.
On the other hand, spot ETH ETFs have led to greater disappointment while seeing a major drop in demand within a month of fall. Many market analysts stated that the exchange-traded funds (ETFs) will be positive for liquidity.
Since the introduction of Ethereum ETFs, the average 5% market depth for ETH pairs on U.S.-based centralized exchanges has fallen by 20%, now sitting at approximately $14 million. On offshore centralized exchanges, the market depth has decreased by 19%, down to around $10 million.
