This Historical Ethereum Top Signal Is Yet To Appear This Cycle
Ethereum Foundation hasn't been making any major sales during this bull market, suggesting that a peak may not have been reached yet.
On-Chain Data Suggests Missing Signal
On-chain data indicates a historical signal usually seen at Ethereum peaks hasn't appeared in the current cycle. The Ethereum Foundation Wallets have not exhibited large outflows so far in this market surge.
Historical Pattern of Ethereum Peaks
According to market intelligence platform IntoTheBlock, Ethereum has shown a specific pattern at previous market peaks. This pattern involves the netflows for wallets associated with the Ethereum Foundation, a non-profit supporting the cryptocurrency and its ecosystem.
In the past, the metric indicated large negative netflows—large amounts of ETH moving out of the Foundation's wallets. Significant sales from these wallets have historically coincided with market peaks.
Current Metrics and Their Implications
Over recent months, the netflows have been relatively neutral even though Ethereum's price has surged. This suggests the Ethereum Foundation hasn’t been making major sales during this bull run. Historically, the Foundation's sales often align closely with market tops.
This neutral netflow could mean that a market peak hasn't been reached, or it could imply a strategic shift by the Foundation that renders the past trend less significant.
Possible Strategic Shift
Another possibility is that the Ethereum Foundation has changed its strategy for this market cycle, meaning historical trends might not be as predictive.
Security Incident
In other news, the Ethereum Foundation's official email was recently compromised. The organization is actively working to resolve the issue. In a follow-up, the team informed subscribers that the previous email announcing a "staking platform" resulted from this compromise.
ETH Price Update
Ethereum fell below $3,300 yesterday but has since rebounded above $3,400. The asset's price has rallied over the past day.
Keep an eye on Ethereum's foundation wallet activities and price metrics, as they historically provide valuable market insights.
