The Ethereum Foundation sold 1,700 ETH yesterday, converting them into USDC. How do you explain this sale, and is it significant?
1,700 ETH sold by the Ethereum Foundation
The ETH sold by the Ethereum Foundation correspond to $2.7 million at the current price. They have been converted into USDC, Circle’s stablecoin. Analytics service Scopescan reported yesterday on the transaction, which took place on Uniswap:
– Scopescan ( . ) (@0xScopescan) October 9, 2023
Historically, Ethereum Foundation sales are sometimes followed by falls in the ETH price, which is why this transfer was noted by the crypto community. But this time, the amount is comparatively small. Last May, the foundation transferred $28.5 million to Kraken. Yesterday’s $2.7 million is therefore a smaller sum – at least symbolically.
A record high according to the Ethereum Foundation?
But it’s worth noting that the Foundation’s sales often coincide with peaks in the ETH price: this was notably the case in November 2021, when it sold $95 million worth of ETH at a time when the cryptocurrency was topping the $4,700 mark.
What this suggests, then, is that the Foundation believes that the ETH price has reached a high point, and that it will not rise immediately. But of course, the organization that manages and promotes Ethereum has no particular predictive skills. So, at most, it’s an indicator of where Ethereum stands. All the more so as the sum involved is relatively small.
As for the ETH price, it exceeded $1,700 at the very beginning of October, before resuming a downward trend. This morning, it stands at $1,590, for a total capitalization of $191 billion.