A member of the Ethereum Foundation recently addressed investor concerns following a massive ETH transfer by the non-profit on Friday. This development is particularly significant as the transaction sparked bearish conversations in the crypto community, particularly due to EF’s association with the Ethereum network.
$94 Million ETH Transfer Is Not a Fire Sale – Ethereum Foundation
On Friday, the Ethereum Foundation deposited 35,000 ETH, valued at $93.8 million, on the Kraken exchange, leading to much speculation under ETH. These concerns arose due to the bearish nature of such massive transactions and the role of the EF in the Ethereum ecosystem.
The EF, described as a non-profit organization, claims a crucial role in sponsoring the technological development of the Ethereum network. Therefore, a sudden ETH offload of this magnitude will undoubtedly attract the attention of investors and general market enthusiasts.
In a X-message On Saturday, Aya Miyaguchi, director of the Ethereum Foundation, explained the recent transaction by saying it is not “equivalent to a sale,” but rather a process in the management of the organization’s treasury. Miyaguchi claims that the ETH deposited on Kraken was swapped for fiat to meet certain obligations. The EF director also attributed the massive ETH withdrawal to an earlier clampdown on treasury activities due to regulatory concerns.
Miyaguchi said:
EF has a budget of ~$100m per year, which largely consists of grants and salaries, and some recipients can only accept fiat. This year there was a long period where we were advised not to do any treasury activities due to regulatory complications, and we couldn’t share the plan in advance.
Prior to this transfer of 35,000 ETH to Kraken, EF had shed significant amounts of ETH in 2024, amounting to 2,516 ETH for $7.4 million DAI. Aya Miyaguchi has stated that the Ethereum Foundation will maintain this constant ETH sell-off in a “planned and gradual” manner.
ETH Price Overview
According to data from CoinMarketCap, ETH is currently trading at $2,748 with a slight gain of 0.63% in the past day. The second largest cryptocurrency is currently stuck in a range-bound market between $2500 – $2800. If ETH bulls can gain control of the market, the altcoin may break out of this consolidation with its next major resistance at $3560. However, an opposite scenario could result in massive selling pressure pushing Ethereum’s price towards $2100.
Main image of INX, chart from Tradingview