Ethereum Foundation Sells US $2.76 Million Worth of ETH – Will the Price Hold Steady?

Ethereum (ETH) has fallen below the US $1,600 ($2,490) mark, coinciding with news of the Ethereum Foundation (EF) transferring and selling a whopping 1,700 ETH. According to Scopescan, the non-profit has sold the whole amount into USDC on Monday, October 9.

Why Did the Foundation Sell Its ETH?

While it is not immediately clear why the transfer was made, it is likely that it was to cover operational expenses. Additionally, according to the foundation’s most recent financial report, it allocates funds to support independent projects and grants.

The report also revealed that the EF holds 99.1% of crypto in ETH. The amount held by the foundation equals 0.297% of the total ETH supply. It should be noted that these figures are from March 2022, as there is no report available for 2023, and data cited does not include the recent sale of ETH.

While the total supply held by the Ethereum Foundation is relatively small compared to the total supply, large transfers often move the markets. This occurred, for example, during the sale of ETH in May 2023. However, this time it comes at a moment when Ethereum has reached a seven-month high in social dominance.

As per Santiment, Ethereum is currently experiencing “its lowest fee levels of 2023, and traders are growing impatient. Rising bearish sentiment is a good sign of an impending turnaround.”

How did ETH price react?

At the time of writing, ETH is down along with the overall market. Amid a 2.9% drop, ETH is currently being traded at US $1,577 ($2,457) according to CoinMarketCap. However, as mentioned, ETH is not the only cryptocurrency experiencing a price drop. All major assets are currently in the red, some even more than ETH.

Out of the top ten assets by market price, Solana (SOL) experienced the sharpest drop with a 5.18% minus in 24 hours. Both Dogecoin (DOGE) and XRP (XRP) dropped 3.64%, while BNB (BNB) fell 2.51%. Cardano (ADA), Tron (TRX) and Bitcoin (BTC) all experienced drops of less than two percent, with 1.91%, 1.78%, and 1.33%, respectively.