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On-chain data tracking service Lookonchain has revealed a mysterious move from the Ethereum Foundation, a non-profit organization backing the Ethereum (ETH) network. Lookonchain tweeted that the foundation sold 100 ETH a few hours ago.
These coins are estimated to be sold for 241,000 DAI, a popular stablecoin token on the Ethereum blockchain. As expected, this move from the foundation has shocked the ETH community. It has injected negative sentiment among holders, as uncertainty is prevailing on the market.
Notably, this is not the first sell-off triggered by the Ethereum Foundation. According to Lookonchain, the foundation has sold 2,616 ETH since Jan. 1. These sales were collectively made for 7.64 million DAI at an average price of $2,922, and they were sent to a decentralized exchange (DEX).
The community is questioning these frequent sales from the foundation while also criticizing Vitalik Buterin. For instance, a user tweeted, “I thought Ethereum said that the previous one was for the entire year but they keep selling again.” Another added, “Wouldn't you sell now if you know that soon ETH is under two thousand American dollars?”
Ethereum price remains under pressure
It is apparent that ETH holders and supporters are against this frequent selling of ETH from the foundation. The market is already under intense bearish pressure, and sell-offs like this only add to it. This issue has emerged as a major controversy on the crypto market, and only time will reveal the exact impacts of it.
The ETH price is under bearish pressure, and it has been moving sideways in the recent past. It is trading at $2,394.10, a fall of 0.19% in the last 24 hours. The trading volume of Ethereum has also plummeted 15.55% to $13.7 billion during this time. Seeing the current situation, a bullish reversal appears not to be happening in the near future.
Yuri Molchan
Denys Serhiichuk