As per the latest on-chain development, the Ethereum Foundation is once again swapping its ETH holdings for the DAI stablecoins. Earlier today, the Foundation swapped a total of 100 ETH for 241,000 DAI followed by the ETH price losing the $2,400 support levels.
Ethereum Foundation Liquidates Its ETH
As per the on-chain data from Arkham Intelligence, the Ethereum Foundation address 0xd7…c1f4 executed a transaction selling 100 Ethereum coins from its holdings for the DAI stablecoin using the Cow Protocol. Reportedly, the Foundation transferred the 241,207 DAI to its new address.
This Ethereum Foundation address 0xd7…c1f4 has shown the pattern of swapping ETH for DAI at intervals of a few weeks throughout 2024, with each transaction amounting typically in the range of 50 ETH to 200 ETH.
Since January 1, the Ethereum Foundation has sold a total of 2,616 ETH for approximately 7.64 million DAI on decentralized exchanges (DEXs). The average sale price for the ETH transactions has been $2,922. The repeated use of Cow Protocol for these sales suggests a consistent strategy for managing Ethereum assets.
The recent swapping by the Ethereum Foundation has brought minor selling press to the ETH price which lost the support of $2,400 as of press time.
ETH Price Comes Under Selling Pressure
As of press time, the ETH price is trading at $2,389 levels with its market cap at $287 billion. Additionally, the daily trading volume has dropped by 13% to $13.7 billion. The ETH bulls have failed to break the key resistance of $2,550 levels consistently showing overall weakness for the world’s largest altcoin.
Besides, the Ether blockchain faces other challenges such as a significant drop in network fees and revenue unappealing staking rewards, and weak demand for its newly launched spot exchange-traded fund (ETF) products.
The drop in the Ethereum mainnet activity has also led to reduced fees, raising concerns about the network’s long-term sustainability, even though there’s the successful adoption of layer-2 scaling solutions.
On the macro front, there’s uncertainty overhang related to the Fed rate cuts expected ahead in September. Popular crypto analyst Michael van de Poppe suggested that the next support level for ETH is $2,100. Reclaiming the $2,410 support levels may further trigger a rally to $2,600-2,700.
