Ethereum
This historic Ethereum signal has yet to appear this cycle
On-chain data suggests that this signal that has historically occurred around Ethereum peaks has not yet appeared in the current cycle.
Ethereum Foundation wallets have not generated significant outflows this cycle so far
In a new job On X, market information platform IntoTheBlock discussed a trend that Ethereum witnessed alongside its previous market highs.
The model in question is linked to the net flows for wallets associated with Ethereum Foundation. The ETH Foundation is a non-profit entity that supports cryptocurrency and its ecosystem.
Below is the chart shared by the analytics firm that shows the trend of the net amount of ETH (in USD) flowing in or out of wallets connected to this organization.
As shown in the chart above, Ethereum Foundation net flows have generally taken negative values over the past. bull markets. Negative net flows are naturally correlated to a net amount of movement of ETH out of wallets connected to the company.
Interestingly, the indicator saw particularly large red spikes around the cryptocurrency’s highs. As IntoTheBlock explains,
Historically, during every bull market, the Foundation has strategically sold significant amounts, often aligning these sales almost perfectly with market peaks.
The chart shows that the value of the indicator has been more or less neutral over the past few months, even though the price of the asset has increased significantly.
This suggests that the Ethereum Foundation has not made any significant sales during this bull market. Considering the historical trend, this may be a sign that a peak is not yet reached for the cryptocurrency, or at least the organization does not judge it as such.
Another explanation, however, could be that the non-profit organization has changed its strategy for this new cycle, meaning that the past trend would no longer have the same weight.
Furthermore, the official email of the Ethereum Foundation was recently compromised, as Tim Beiko, one of the developers of ETH, revealed in an job.
The developer had noted that the organization was trying to contact SendPulse, an email automation service used by the company, to resolve the issue.
In a follow-up jobBeiko confirmed that the team sent an update to Ethereum Foundation blog subscribers, warning them that the previous email, announcing a “staking platform” by the organization, was a result of the compromise.
“We should have locked down all external access, but we are still confirming,” the developer said in the post.
ETH Price
Ethereum dipped below the $3,300 level yesterday, but the asset has since recovered above $3,400.
Featured image of Dall-E, IntoTheBlock.com, chart by TradingView.com