Ethereum Foundation Transfers Another 1,000 ETH, Dumping Concerns Grow

Ethereum Foundation Transfers Another 1,000 ETH, Dumping Concerns Grow

The Ethereum Foundation has transferred another 1,000 ETH to a multisig wallet, raising concerns about the possibility of a sell-off. On-chain data analytics provider Lookonchain reported the transfer on Twitter, noting that the ETH was sent to a wallet beginning with 0xbC9a. Based on previous patterns, Lookonchain said it is likely that the funds will be further transferred to an address beginning with 0xd779 and swapped for DAI. This would mark the second major ETH transfer by the Ethereum Foundation in recent weeks. On June 22, the foundation transferred 10,000 ETH to the same multisig wallet, which was subsequently swapped for DAI. The Ethereum Foundation has not commented on the reason for the transfers. However, some observers have speculated that the foundation is selling ETH to fund its operations or to support the development of the Ethereum ecosystem. The ETH transfers come at a time when the cryptocurrency market is experiencing a downturn. ETH has lost more than 50% of its value since reaching an all-time high of over $4,800 in November 2021. The Ethereum Foundation's ETH sales could put further downward pressure on the price of ETH. However, it is also possible that the foundation is simply taking advantage of the current market conditions to sell ETH at a higher price than it would be able to in the future.