Ethereum Foundation Initiates Unexpected $3.68 Million ETH Sell-off, Fueling Speculation of Market Peak
The Ethereum Foundation, a renowned non-profit organization, has made a surprising move by initiating a large sell-off of Ethereum (ETH) to a single address, known as “Cumberland Forwarder,” causing speculation about a potential market peak.
On the 4th of March, a series of transactions were executed by a wallet address linked to the Ethereum Foundation. Among these transfers, three ETH transactions were made to the address “Cumberland Forwarder.” Notably, two transactions involved the sell-off of 500 ETH each, while the third transaction had a value of 0 ETH.
As of now, the price of Ethereum stands at $3,684.95, placing the total value of the Ethereum Foundation’s sell-off at over $3.68 million.
This unexpected sell-off raises questions about the foundation’s perspective on Ethereum’s current valuation. It is worth noting that the foundation has previously sold ETH tokens during market peaks. Coincidentally, the timing of these transfers could potentially indicate a peak in Ethereum’s price, as history has shown that significant price corrections tend to follow such occurrences.
In January, Celsius Network triggered a massive sell-off worth approximately $125 million worth of ETH, which led to a significant decline in Ethereum’s price.
Recently, Ethereum has been experiencing substantial gains, edging closer to its previous all-time high of $4,379 in May 2021. Numerous analysts have consistently made bullish predictions regarding the cryptocurrency’s price, with many expecting it to soar beyond $5,000 in the near future.
Considering the ongoing upgrades and developmental activities within the Ethereum blockchain, reaching a price of $4,000 appears to be a realistic possibility. However, if Ethereum does reach its peak, it may enter a sell-off phase as investors seek to capitalize on their investments. This could trigger a price reversal, reduce demand, and create Fear, Uncertainty, and Doubt (FUD) among traders and investors.
Analyst comment
The news can be evaluated as negative. As an analyst, it is likely that the market will experience a temporary downturn as a result of the Ethereum Foundation’s unexpected sell-off. This could lead to a price reversal, reduced demand, and increased uncertainty among traders and investors.
