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Highlights
- Ethereum Foundation has continued its ETH selloff spree.
- In the latest transaction, the institution offloaded 150 ETH.
- Ether has maintain a stagnant position at the $3,300 level.
The Ethereum Foundation has been actively selling off its holdings of Ethereum (ETH) over the past few weeks. This move has raised eyebrows and speculations within the crypto community. Moreover, Ether’s sluggish performance at $3,300 after the ETF launch is also a matter of comcern.
Ethereum Foundation’s ETH Offloading Spree
According to data from Arkham Intelligence, a Ethereum Foundation-associated address (0xd7…c1f4) recently dumped 150 ETH through the Cow Protocol, exchanging it for 497,250 DAI. This transaction, which took place at 05:21 a.m. EST today, follows a pattern observed since the beginning of the year.
The same address has been consistently selling Ethereum for DAI almost every few weeks in amounts ranging from 50 to 200 ETH. Moreover, last week also saw intense dumping by the Ethereum Foundation. On July 26, blockchain analytics firm Lookonchain reported that an Ethereum Foundation wallet transferred 92,500 ETH, worth approximately $294.9 million.
The shift was made to a new wallet for the first time in nearly 6.6 years. This wallet originally received ETH from the Ethereum Foundation on September 1, 2015. Hence, the latest transfer adds to the uncertainty of ETH selloffs by the institution.
Additionally, on July 23, the Ethereum Foundation sold 100 ETH for 345,179 DAI. This transaction coincided with the start of trading for Spot Ethereum ETFs, further fueling market speculation. Moreover, the recent sell-offs by the Ethereum Foundation have sparked discussions about potential downward pressure on ETH price.
Also Read: BlackRock Ethereum ETF Crosses $600 Million Inflows In A Week
ETH ETF Outflows & FOMC Meeting
Despite these significant transactions, the market has shown resilience. The ETH price is holding tight on the $3,300 level after a dramatic drop earlier this month. However, for a bullish trend to take hold, ETH needs to cross the $3,500 mark and sustain a rally toward $4,000.
Since the second day of debut, the Ethereum ETFs witnessed net outflows owing to Grayscale’s ETHE. However, in a positive development for the market, the Grayscale ETHE ETF outflows have slowed. Meanwhile, the newly launched Spot Ethereum ETFs recorded net inflows of $33.7 million on Tuesday July 30. BlackRock led the charge with $118 million influx.
These inflows provided a much-needed boost to optimism around ETH price, which had been lagging behind Bitcoin (BTC) for the past month. Amid these developments, QCP Macro’s analysis provides crucial insights into the broader market context.
Looking ahead, QCP anticipates increased volatility ahead of today’s Federal Open Market Committee (FOMC) meeting. They do not expect a rate cut and place higher importance on the accompanying statement and Fed Chair Jerome Powell’s press conference. QCP’s base case is for one rate cut in both September and December. However, any deviation from these expectations could trigger risk-off moves across all asset classes, including cryptocurrencies.
Moreover QCP notes the positive impact of the net inflows into Spot Ether ETFs but they foresee continued outflows from ETHE over the next two weeks. Hence, they recommended maintaining a preference for ETH longs as ETHE outflows subside and ETH catches up to BTC. Their target is a break above $4,000, which represents the 2024 high.
Also Read: Franklin Templeton Eyes Solana as Next Crypto ETF Offering
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