On-chain data tracker Arkham Intelligences revealed that the Ethereum Foundation recently moved $96 million in Ether to a Kraken exchange account. This significant transfer has sparked debate among observers, who wonder how it might impact the price movement of Ether (ETH).
The price of Ether soared more than 500% in the months following the Ethereum Foundation’s significant sale of ETH in May and November 2021.
While the foundation’s previous sales triggered significant market rallies and declines, the impact of the recent sale remains uncertain.
Ethereum Foundation Sale Impact
The information from Arkham explains that the Ethereum Foundation has a track record of making timely sales. In 2020, the foundation released 100,000 ETH, approximately $63 million, when ETH’s price was $635.
The Ethereum Foundation famously sold the top in both May and November 2021.
But in 2020, they sold 100K ETH, right before ETH pumped 6x.
Last night they sent another 35K ETH to Kraken, worth $95M.
Did they get it right this time? pic.twitter.com/bYLOyv8mGQ
— Arkham (@ArkhamIntel) August 24, 2024
Five months after the sale, on May 12, 2021, the price of Ether rose to $4,182, almost a sixfold increase. Later that year, Ether hit a cycle high of $4,891. This sale, which occurred at a key inflection point, fueled stories about the foundation’s “sell the top” tendency.
Also, on May 6, 2023, the foundation moved about $30 million worth of ETH to the Kraken exchange. ETH’s price slightly declined after this transaction, dropping by 4.8% to $1,900. However, this decrease didn’t have a significant impact because the overall market was recovering, so the price quickly stabilized.
On August 23, 2024, the Ethereum Foundation executed another major move. This time, it sent approximately 35,000 ETH worth $96 million to a wallet associated with the Kraken exchange.
Note that #Ethereum Foundation deposited 35,000 $ETH($94.07M) into #Kraken just now!🚨https://t.co/1DMzORJ9Eg pic.twitter.com/91x2ik2kbH
— Lookonchain (@lookonchain) August 23, 2024
The recent transaction sparked speculations about whether the foundation had spotted another moment of market trends. Arkham asked in the X post, “Did the Ethereum Foundation nail the timing once again?”
The Ethereum Foundation famously sold the top in both May and November 2021.
But in 2020, they sold 100K ETH, right before ETH pumped 6x.
Last night they sent another 35K ETH to Kraken, worth $95M.
Did they get it right this time? pic.twitter.com/bYLOyv8mGQ
— Arkham (@ArkhamIntel) August 24, 2024
Aya Miyaguchi, the executive director of the Ethereum Foundation, addressed the rumors. She clarified that this recent transaction was part of the foundation’s broader “treasury management activities.”
This is part of our treasury management activities. EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any…
— Aya Miyaguchi (ayamiya.eth) (@AyaMiyagotchi) August 24, 2024
Miyaguchi further explained that the move was not necessarily an immediate sale. Instead, it was intended to balance the foundation’s finances, as some of its obligations require payments in fiat currency.
Plans and Speculation Amid Stable ETH Prices
Miyaguchi also mentioned that this year’s treasury activities had been delayed due to regulatory complexities, which prevented them from announcing their plans in advance. However, she hinted at more “planned and gradual sales” in the future.
The Ethereum Foundation’s treasury currently owns around 273,000 ETH, valued at over $751 million. The recent transfer follows several similar transactions.
A notable one occurred in July 2024, when the foundation transferred 92,000 ETH, worth over $253 million, from an inactive wallet that had been inactive for seven years.
The purpose of this massive transfer remains unknown, adding another layer of mystery to the foundation’s financial maneuvers. Despite the uncertainty surrounding these recent transactions, the price of ETH has remained relatively stable.
Following the August 23 transfer, ETH prices dipped slightly but quickly rebounded. On August 24, ETH was trading at around $2,656, spiking to $2,808 the next day before settling at approximately $2,743 on August 26.
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