Tuesday witnessed a notable drop in Ethereum's (ETH) price, with CoinMarketCap listing it at $1,577, a 2.9% decrease. The slump comes in the wake of the Ethereum Foundation's (EF) trading of 1,700 ETH into Circle's USDC via Uniswap, according to data from Scopescan. The transaction is believed to have been carried out to meet operational expenses and fund independent projects and grants.
The EF's recent transaction has stirred market sentiment and led to increased polarization within the crypto community. Ethereum's fee levels have reached their lowest point this year, and the digital currency is testing the $1,550 mark, which some analysts interpret as indicative of an impending market turnaround.
The EF's financial statement revealed that it held approximately 395,000 ETH as of April 2022, accounting for 0.297% of Ethereum's total supply. Following the recent sale, the foundation now holds 316,488 ETH, valued at $502.7 million. Ethereum makes up 99.1% of the EF's crypto holdings; these statistics exclude the recent sale.
Large transactions by the EF have historically influenced market movements. For instance, in May 2023 a transfer worth $28.5 million to Kraken coincided with price peaks. Similarly, during that month Ethereum experienced a seven-month high in social dominance.
These developments will be discussed further at Benzinga's Future of Digital Assets event. Meanwhile, Santiment predicts an imminent Ethereum turnaround due to its lowest fee levels of 2023 and heightened trader impatience amid a market-wide drop.
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