In the past, significant sales by the Ethereum Foundation have preceded substantial increases in Ether’s price, leading to speculation about what might happen after their latest move. According to blockchain analysis firm Arkham Intelligence, the Foundation’s sale of 100,000 ETH in 2020 was followed by a remarkable 500% surge in Ether’s value. However, whether history will repeat itself remains uncertain.
A Look Back: 2020 Ethereum Foundation Sale and Subsequent Price Surge
Arkham Intelligence noted in an August 25 post on X (formerly Twitter) that the Ethereum Foundation has a history of making well-timed sales. In 2020, the Foundation sold 100,000 ETH on December 17 at around $635 per Ether. Over the following months, Ether’s price skyrocketed, reaching $4,182 by May 12, 2021, and peaking at $4,891.70 in November of the same year.
This trend has led to speculation among investors and analysts about the potential impact of recent Ethereum Foundation transactions. On August 23, the Foundation transferred 35,000 ETH, worth approximately $96 million, to a wallet identified as belonging to the Kraken exchange. This movement has sparked debate on whether a similar price surge could follow.
Clarifying the Recent Transfer: Ethereum Foundation’s Explanation
Amid growing speculation, Ethereum Foundation executive director Aya Miyaguchi clarified the reasons behind the recent transfer. In a post on X, Miyaguchi explained that the transaction was part of the Foundation’s regular treasury management activities, emphasizing that it was not necessarily indicative of an outright sale.
Miyaguchi elaborated that the Foundation manages an annual budget of $100 million, primarily used for grants and salaries, some of which require payment in fiat currency. The recent transfer was aimed at balancing the Foundation’s financials, and due to regulatory challenges earlier in the year, the organization could not share its treasury management plans in advance. Moving forward, the Foundation anticipates conducting “planned and gradual sales” to manage its finances.
Market Impact and Ongoing Speculation
Despite the recent transfer, Ether’s price has remained relatively stable. On August 24, Ether traded at around $2,656, rising to $2,808 the following day and settling near $2,743 as of August 26. However, the market remains watchful, particularly given that this latest transfer follows another significant move by the Foundation last month, where 92,000 ETH (valued at over $253 million at the time) was transferred to an unknown wallet. This address had been dormant for seven years, and the Foundation has not publicly explained the transaction’s purpose.
This is not the first time a notable transfer by the Ethereum Foundation has drawn attention. On May 6, 2023, the Foundation moved nearly $30 million worth of Ether to Kraken, which coincided with a 4.8% dip in Ether’s price to $1,900. However, this decline was short-lived, occurring amid a broader market recovery.
Currently, the Ethereum Foundation still holds approximately 273,000 ETH, valued at over $751 million. With this significant holding, any further movements could continue to influence market sentiment and price action.
