As a seasoned analyst with over two decades of market experience under my belt, I find myself intrigued by the latest developments in the Ethereum (ETH) market. The recent price surge and subsequent minor decline following the Ethereum Foundation’s substantial ETH sale has left many market observers scratching their heads.
After positive remarks about an upcoming interest rate reduction from US Federal Reserve Chairman Jerome Powell, various cryptocurrencies, including Ethereum (ETH), saw a swift price increase on Friday, leading to a 6% rise in the total crypto market capitalization. The value of Ethereum specifically surged by approximately 6.38%, approaching the $2800 mark. Despite the overall crypto market being flooded with optimistic outlooks, the Ethereum Foundation (EF), a non-profit entity dedicated to Ethereum’s network maintenance, has sold a significant amount of ETH.
Ethereum Foundation Executes Largest ETH Sale Of 2024
Based on data from a blockchain analysis company called Spot on Chain, it appears that the Ethereum Foundation (EF) has been offloading modest portions of its assets over the past several months. This selling activity culminated in the sale of 2516 Ether for approximately $7.4 million worth of DAI.
On a Friday in 2024, the Ethereum Foundation completed its largest sale transaction, transferring 35,000 ETH (valued at approximately $93.8 million) to the Kraken exchange. These significant transactions often garner attention because they can suggest the potential direction of the market’s movement in the near future.
BREAKING: The Ethereum Foundation deposited 35,000 $ETH ($93.8M) to #Kraken an hour ago!
2024 has seen their biggest Ethereum ($ETH) transfer out thus far, surpassing the past instances where the Ethereum Foundation infrequently sold a few hundred ETH on Decentralized Exchanges (DEX), accumulating a total of 2,516 ETH, equivalent to approximately 7.4 million DAI.
— Spot On Chain (@spotonchain) August 23, 2024
Specifically, the recent transaction by the Ethereum Foundation has sparked speculation because of its close ties to the Ethereum blockchain. Some Ethereum supporters view this sale as a potentially bearish indicator. Importantly, within the past few hours after the sale, Ethereum has seen a modest dip of 1.3%.
Despite a predominantly optimistic outlook in the broader market, there’s a strong expectation that the Federal Reserve will lower interest rates in September. Lower rates, being the opposite of rate increases, make it easier for investors to purchase riskier assets like cryptocurrencies. After Powell’s statement last Friday, analysts are forecasting a reduction of 0.30% to 0.50%, which could potentially boost the crypto market, including Ethereum (ETH).
1. In addition, the current price increase might mitigate the impact of the upcoming expiration of 140,000 ETH options. This is due to the fact that the asset’s current value ($2750) significantly surpasses the max pain point of these options at $2625. In other words, the maximum potential losses would occur if the options expired when the market price was exactly $2625. Additionally, it’s worth noting that the Ethereum Foundation holds a substantial amount (273,273.96 ETH) valued at approximately $754.76 million. Their recent transaction does not suggest a lack of faith in Ethereum.
ETH Price Overview
Previously mentioned, the cost of Ethereum currently stands at $2750 due to the increase in value seen on Friday. Yet, long-term investors are likely anticipating a prolonged price surge, as the digital currency is still behind by 20.48% when compared to its monthly performance chart.
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2024-08-24 16:34