Ethereum

Foundation Transfers $290 Million in ETH, Market Reacts

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Yet another crypto shock?

A wallet linked to the Ethereum Foundation was recently transferred 92,500 ETHworth approximately $290 million. This is the wallet’s first major activity since 2017 and has generated considerable buzz in the cryptocurrency world, especially since it happened just two days after Ethereum ETF The timing has raised questions about the reasons for the mass transfer.

Transfer decomposition

Etherscan reveals that the wallet made two transactions: a small transfer of 1 ETH and a larger transfer of 92,499.11296297 ETH. The only previous activity in the last seven years was a small transfer of 0.000513 ETH a month ago. At the time of the large transfer, Ether was valued at $3,160 per unit. Despite the size of the transaction, the market remained stable with no immediate changes.

What the analyst discovered

Blockchain Analytics Platform Arkham Intelligence


Arkham Intelligence Crypto Intelligence

followed up on the transfer, noting that the funds were moved to another address with no further activity. The Ethereum Foundation has not commented on the transfer, and inquiries remain unanswered.

Whales make strategic moves

On July 25, a prominent Ethereum whale who made $173 million in profit deposited 10,000 ETH, worth about $34.2 million, onto Kraken just before Ethereum’s price crashed. This whale had previously withdrawn 96,639 ETH from Coinbase for about $1,580 in August and September 2022 and deposited 40,000 ETH onto Kraken for about $3,422 since March. The whale still holds 56,639 ETH, and its total Ethereum profit has increased by 113%.

Current Market Overview

In other news, the Ethereum market has recently declined due to the significant drop in trading volumes of new ETFs. Initially, ETFs saw strong trading volumes, totaling $1 billionGrayscale Ethereum Trust (ETHE) led with $461 million in inflows, followed by BlackRock’s iShares Ether Trust (ETHA) with $244.7 million and Grayscale’s mini ETF with $63.8 million.

However, within 48 hours, Grayscale’s ETHE saw a major outflow of $346 million, which negatively impacted the market.

ETH Price Analysis

Ethereum is currently down 4.8% over the past 24 hours, trading at $3,180, with trading volume down to $25 billion. This reflects a 10.83% decline in overall trading volume to $39.83 billion and a more than 50% drop in options volume. Despite these setbacks, a slight increase in options open interest and bullish long/short ratios on major platforms like Binance and OKX suggest that some investors are still optimistic about future price movements.

Read also : New US Crypto Tax Bill: Donald Trump’s Crypto Commitment and Senate Bill Spark Optimism in the Market

There’s no doubt that we’re living in exciting times for Ethereum. Once the dust settles, one thing is clear: the cryptocurrency market is far from predictable.

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