Ethereum Foundation Moves $94.07M ETH To Kraken, What’s Next?

The Ethereum Foundation has been gradually reducing its ETH holdings for the last few months. Today, the foundation has transferred its largest pile in 2024 amid the Fed rate cut speculations and ETH options expiry.

Ethereum Foundation Largest ETH Transfer of 2024

The Ethereum Foundation has conducted its largest transaction of the year, with 35,000 ETH, which is approximately equal to $94.07 million, sent to the Kraken exchange. This comes after a series of small disposals over the past few months where the foundation sold 2,516 Ether for $7.4 million in DAI.

This particular transfer is noteworthy because of its size and contributes to the current debate regarding the Ethereum Foundation’s approach and timing in handling its resources. The foundation has been credited with good market sense as it has sold a large quantity during market highs, and as such, there has been a lot of attention from the crypto community on its recent activities.

Timing Amid Fed Rate Speculations

This large transfer from the Ethereum Foundation can be associated with the general market trends influenced by the expectations of Federal Reserve rate cuts. During his speech at Jackson Hole, Fed Chair Jerome Powell suggested potential policy changes, which caused a spike in Bitcoin and ETH price.

Furthermore, the expiration of 140,000 Ether options with a notional value of $370 million has also boosted market uncertainty. The maximum pain point for these options is $2,625, and the increased trading activity has resulted in increased open interest and trading volume, which has fueled further speculation regarding the price direction of Ethereum in the near term.

In tandem with the transition, developers have hinted at a new upgrade named “Fulu-Osaka. ” In a recent report by CoinGape, EtherCast developers participated in the 140th All Core Developer Consensus Conference Call (ACDC), where they talked about this update. The Fulu-Osaka upgrade may have an impact on the future performance of the network, which could lead to even more interest in ETH.

Historical Context and Strategic Management

The Ethereum Foundation has historically demonstrated a pattern of selling large amounts of Ether during market highs. This trend was highlighted when it sold 20,000 ETH in November 2021 at the peak of the previous bull market cycle. 

Similarly, in 2017, co-founder Vitalik Buterin disclosed that the foundation had sold 70,000 ETH at the peak of that year’s market rally. These decisions have often been seen as strategic, leveraging market conditions to optimize the foundation’s financial position.

The recent transfer also follows a significant move in July, when the foundation moved 92,500 ETH, valued at $294.9 million, to a new wallet. This was the foundation’s first significant transfer in over six years, further fueling speculation about its long-term strategy. Despite this, ETH price has remained relatively stable after the transfer, trading at around $2,729, a 4% increase over the last 24 hours.