According to blockchain tracing firm Arkham Intelligence, the price of Ether previously surged over 500% following a significant Ethereum Foundation sale of ETH, although the outcome this time remains uncertain.
Arkham noted in an August 25 post on X that The Ethereum Foundation famously sold the top in both May and November 2021. However, in 2020, they sold 100,000 ETH just before its price increased sixfold.
The Ethereum Foundation recently transferred approximately 35,000 ETH, valued at $96 million, to a Kraken exchange deposit address on August 23 at 5:26 pm.
Arkham’s data reveals that the Ethereum Foundation sold around 100,000 ETH, worth about $63 million, on December 17, 2020, at approximately $635 per ETH. By May 12, 2021, the price had surged to a high of $4,182, and later that year, on November 10, it peaked at $4,891.70.
“Last night, they sent another 35,000 ETH to Kraken, worth $95 million. Did they get it right this time?” Arkham speculated.
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In response to the speculation, Ethereum Foundation executive director Aya Miyaguchi clarified on X that the transfer was part of “treasury management activities” and not equivalent to a sale. She explained that the foundation’s annual budget of $100 million, used for grants and salaries, requires some payments in fiat currencies.
“This year, we were advised against conducting treasury activities due to regulatory complications, which prevented us from sharing the plan in advance”, Miyaguchi stated. She also noted that there will likely be “planned and gradual sales” in the future.
As of August 26, the price of Ether, currently at $2,745, has remained relatively stable. It briefly fell to $2,656 on August 24 before rising to $2,808 the following day and settling around $2,743.
This latest transfer follows a previous transaction in July, where the Ethereum Foundation moved about 92,000 ETH, worth over $253 million at current prices, to an unidentified wallet. The foundation has yet to explain the details of that transfer.
On May 6, 2023, the foundation transferred nearly $30 million in Ether to Kraken, resulting in a 4.8% drop in price to $1,900 on that day, though this decline was minor compared to a broader recovery trend.
Currently, the Ethereum Foundation holds around 273,000 ETH, valued at over $751 million.
Cre: cointelegraph
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