The Ethereum Foundation has responded to worries arising from a substantial ETH transfer initiated by the non-profit organization on Friday. This move gave rise to negative discussions within the crypto community, particularly due to the EF’s association with the Ethereum network.
Ethereum Foundation Clarifies $94 Million ETH Transfer
On Friday, the Ethereum Foundation made a deposit of 35,000 ETH, amounting to $93.8 million, on the Kraken exchange, triggering speculation among ETH holders. The massive nature of such transactions and the EF’s role in the Ethereum ecosystem fueled concerns.
The EF, positioned as a non-profit entity, plays a crucial part in funding the technological advancements of the Ethereum network. Hence, a sudden large-scale offload of ETH like this inevitably attracts attention from investors and the broader market.
In a post by Aya Miyaguchi, the Executive Director of the Ethereum Foundation, it was clarified that this transaction was not a direct sale but rather a part of the organization’s treasury management. The ETH sent to Kraken was converted to fiat to fulfill specific obligations. Miyaguchi pointed out that regulatory constraints had previously inhibited treasury activities, necessitating the recent large ETH withdrawal.
Speaking about the situation, Miyaguchi explained:
The EF operates on a budget of around $100 million annually, mainly comprising grants and salaries, with some recipients only accepting fiat. Due to regulatory complications, there was a period when we were advised against engaging in treasury activities, and we could not disclose our plans beforehand.
Prior to the 35,000 ETH transfer to Kraken, the EF had gradually been selling significant amounts of ETH in 2024, totaling 2,516 ETH for $7.4 million DAI. Miyaguchi emphasized that this continuous ETH selling will be conducted in a methodical and gradual manner.
ETH Price Update
Current data from CoinMarketCap reveals that ETH is trading at $2,748, displaying a slight increase of 0.63% over the past day. The second-largest cryptocurrency is currently experiencing a range-bound market between $2500 and $2800. If ETH bulls manage to seize control of the market, the altcoin could break out from this consolidation, encountering significant resistance at $3560. Conversely, a bearish scenario might lead to substantial selling pressure, potentially plummeting Ethereum’s price to as low as $2100.
