An Ethereum Foundation member recently addressed investor concerns following a massive ETH transfer by the nonprofit organization on Friday. This development is particularly significant as the transaction sparked bearish chatter in the crypto community, particularly due to EF’s association with the Ethereum network.
$94M ETH Transfer Is Not a Massive Selloff – Ethereum Foundation
On Friday, the Ethereum Foundation deposited 35,000 ETH, worth $93.8 million, onto the Kraken exchange, sparking widespread speculation among ETH holders. These concerns stemmed from the bearish nature of such massive transactions as well as the EF’s role in the Ethereum ecosystem.
The EF, which presents itself as a non-profit organization, claims a vital role in sponsoring the technological development of the Ethereum network. Therefore, a sudden transfer of ETH of this magnitude is bound to attract the attention of investors and market enthusiasts in general.
In a post published on X on Saturday, Aya Miyaguchi, executive director of the Ethereum Foundation, explained the recent transaction by saying that it was not “equivalent to a sale” but rather a process of managing the organization’s treasury. Miyaguchi claims that the ETH deposited on Kraken was exchanged for fiat currency to settle some obligations. The EF director also attributed the massive ETH withdrawal to a previous constraint on treasury activities due to regulatory issues.
Miyaguchi said:
EF has a budget of about $100 million a year, largely in grants and salaries, and some grantees can only accept fiat funds. This year, we were advised for a long time not to do any treasury activities due to regulatory complications, and we were unable to share the plan in advance.
Prior to this 35,000 ETH transfer to Kraken, the EF had been dumping significant amounts of ETH in 2024, amounting to 2,516 ETH for $7.4 million DAI. Aya Miyaguchi said that the Ethereum Foundation would maintain this steady ETH sale in a “planned and phased” manner.
ETH Price Overview
According to data from CoinMarketCap, ETH is currently trading at $2,748 with a slight gain of 0.63% over the past day. The second-largest cryptocurrency is currently stuck in a price range between $2,500 and $2,800. If ETH bulls manage to take control of the market, the altcoin could break out of this consolidation and its next major resistance would be set at $3,560. However, a reverse scenario could result in massive selling pressure, pushing Ethereum price as low as $2,100.
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