Ethereum Foundation Adds To Selling Pressure With $1.7M Move

According to Dailycoin, Crypto project teams selling tokens to fund operations is nothing new. However, it hardly ceases to spark concern. In the latest instance, a move from the Ethereum Foundation has sparked concerns about the formation of a local price top and the beginning of a price dump, particularly as they come amid uncertain market conditions.

Ethereum Foundation on the Move.
The Ethereum Foundation sold 700 ETH for about 1.7 million DAI in four transactions between 8:54 am UTC and 9:02 am UTC on Monday, January 22, per Etherscan data. The sum was later transferred to a “Grant Provider” address, potentially for distribution. The move has stirred concerns within the crypto community, as selling by the Ethereum Foundation has often been linked to the formation of local market tops. ETH did not react sharply to the sell-off, experiencing only a mild decline from $2,420.61 to $2,417.63 around the time of the transaction. However, this price decline has continued amid a broader market correction.

ETH Sheds Recent Gains.
At the time of writing, ETH is trading at around $2,320, down nearly 6% in the past 24 hours as it sheds gains that had seen it surpass the $2,600 price point on speculation that the SEC was set to approve spot Ethereum ETFs in May 2024. The recent market correction follows market concerns over significant outflows from Grayscale’s Bitcoin ETF, which have placed downward pressure on the BTC price. On Sunday, January 21, prominent analyst Ali Martinez warned that ETH risked a pullback to the $2,000 price level if it failed to hold support at $2,388.