How Did ETH Price React to Ethereum Foundation Moving $30 Million in ETH to Kraken?
Ethereum Foundation Transfers $30 Million in ETH to Kraken
On the morning of May 6, 2023 (Vietnam time), on-chain data revealed that the Ethereum Foundation transferred a total of 15,000 ETH to Kraken. Additionally, an address labeled as Vitalik Buterin's also moved 200 ETH to the same exchange.
This total amount was valued at approximately $30 million at the time of the transaction.
Impact on ETH Price
Examining the transaction history of the Ethereum Foundation's wallet, we can observe a pattern where each transfer of coins to exchanges often precedes a significant drop in ETH's price. Details can be seen in the chart below.
After vitalik.eth transferred 200 $ETH($396K) to #Kraken, ETH Foundation also transferred 15,000 $ETH($29.7M) to #Kraken.https://t.co/FPVeH3Z8sJhttps://t.co/AHALnpKtxd pic.twitter.com/iLIHghJUIX
— Lookonchain (@lookonchain) May 6, 2023
Historical ETH Sales by Ethereum Foundation:
- In March 2021, Ethereum Foundation moved 28,000 ETH to Kraken, followed by a noticeable price drop within a week.
- In May 2021, a transfer of 35,000 ETH to an exchange resulted in an immediate price decrease.
- The most recent significant sale was in November 2021, when Ethereum Foundation transferred 20,000 ETH to Kraken. This led to a decline in ETH price from a peak of $4,800 to about $4,300.
It seems that the Ethereum development team has a knack for timing their market moves accurately, choosing peaks during the previous bull run to offload their holdings.
Normal Practice for Project Teams
It is not unusual for project teams to sell tokens. According to common tokenomics, a portion of tokens is typically retained by the team to cover operational costs, marketing, and other expenses.
Current ETH Price Action
In the last 24 hours, ETH’s price has remained relatively stable, hovering around $1,960.
1-hour chart of ETH/USDT on Binance at 02:00 PM, May 6, 2023
