Ethereum Foundation Wallet Sell Off Linked to ETH Price Drop

Ethereum Foundation Wallet Sell-Off Linked to ETH Price Drop

The price of Ethereum’s native ETH token fell roughly 1.5% over the past day, apparently in response to a wallet associated with the Ethereum Foundation offloading a portion of its ETH holdings.

On-chain data shows the wallet with address “0x9eE457023bB3De16D51A003a247BaEaD7fce313D”, labeled as a Foundation “Grant Provider“, exchanged over 1,700 ETH worth $2.7 million for the USDC stablecoin on Monday.

Lack of Clarity on Sale Reasons

The Ethereum Foundation wallet originally held around $400,000 of ETH earlier Monday before the sudden sell-off.

With no clarity given on the motivations behind liquidating part of its ETH stash, traders reacted by selling and driving ETH down 1.8% over 24 hours. Other major cryptocurrencies were also pulled lower in sympathy.

While not a formal governing body, the Ethereum Foundation’s activities and holdings can influence market perception of ETH by developers and investors.

Previously Massive ETH Holdings

The Foundation’s ETH treasury amounted to over $1.29 billion in April 2022, accounting for more than 0.297% of total ETH supply at the time.

Outside of its Ethereum investments, the non-profit also held around $300 million in non-crypto assets then.

By liquidating ETH without transparency, the Foundation may have inadvertently spooked traders already on edge from a year of market turmoil.

While its intentions remain unclear, the incident exemplifies the outsized market influence of major ETH holders and the delicate trader psychology during ongoing crypto volatility.

Thuy Nguyen
Thuy Nguyen


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