Ethereum Foundation sells $1.6 million in ETH, causing price to drop nearly 5%

The Ethereum Foundation just moved to sell 700 ETH at a price of 2,406 USD, causing the value of this currency to immediately adjust down nearly 5%.

Ethereum Foundation sells $1.6 million in ETH, causing price to drop nearly 5%

On-chain data fromArkham Intelligence, wallet address "0xd779332c5A52566Dada11A075a735b18DAa6c1f4" is labeled Ethereum Foundation- the management organization behind the Ethereum (ETH) cryptocurrency - has just swapped 700 ETH on the DEX CoWSwap between 15:54-16:05 Vietnam time to receive 1,684,445 stablecoinCOME ONat a price of 2,406 USD.


The 1,684,445 DAI stablecoins were then transferred to the Ethereum Foundation's wallet address "0x9eE457023bB3De16D51A003a247BaEaD7fce313D" to perform the grant disbursement process.

Worth mentioning, this is the second time the Ethereum Foundation has taken this action in January 2024. 6 days ago, the Ethereum Foundation also took a similar action when selling 800 ETH at an average price of 2,422 USD to receive 1.937 million DAI. 

If you look back at the transaction history, the Ethereum Foundation's actions on ETH all had a "negative" effect, drastically reducing the value of this currency immediately afterward.

• In October 2023, the Ethereum Foundation wasswap 1,700 ETHvia DEX Uniswap to receive 2.76 million stablecoin USDC, causing ETH price to drop to 1,586, falling from the previous mark of 1,600-1,700 USD.
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• Or in May 2023, the Ethereum Foundation took action transfer a total of 15,000 ETH (equivalent to 30 million USD at that time) onto the Kraken exchange.
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• The most recent "strong dump" was in November 2021, the price of ETH dropped from a peak of 4,800 USD to about 4,300 USD when the Ethereum Foundation team transferred 20,000 ETH to the Kraken exchange. It seems that Ethereum developers also "timed" the market very accurately when choosing the exact ETH price peak of the previous bull-run season to release.
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• Ethereum founder Vitalik Buterin on December 20, 2023 made a transfer of 500 ETHlisted on CEX Coinbase Prime. Previously on October 7 of the same year, the "father of Ethereum" was discovered to have sold 1,000 ETH (1.64 million USD) on Bitstamp. Vitalk Buterin is also a regular ETH sales in August and September last year.

Another piece of information that also attracts attention because it affects the price of ETH is a cryptocurrency lending company went bankruptCelsius, is expected to "sell" large amounts of ETH and many other altcoins in the near future alongside the announcementStop staking Ethereum, in order to prepare to liquidate assets and repay debts to customers.

On-chain data shows that Celsius wallets still hold more than 539,000 ETH (worth about 1.4 billion USD), nearly 9,800 BTC (419.2 million USD) and many other altcoins such as MATIC,...In the first weeks of January 2024,Celsius has transferred up to 125 million USD ETH to Coinbase and FalconX.

The news has somewhat negatively affected the sentiment of the Ethereum community as they worry about their investment portfolios. ETH price also immediately adjusted down more than 3% to 2,361 USD from the initial trading mark around the Ethereum Foundation's "clearance" zone of 2,406 USD.

1h chart of the ETH/USDT pair on Binance at 06:15 PM on January 22, 2024