On Monday, 1,700 ETH were seen being sold through Kraken using a wallet address connected to the Ethereum Foundation. On-chain analysis looks at how this could affect the price of ETH in the coming weeks.
Key Takeaways: The price of Ethereum (ETH) fell below $1,600 on Monday due to market reactions that were unfavourable to insider-controlled wallets taking millions out of them.
On-chain researchers saw on Monday 1,700 ETH being sold through Kraken by accounts connected to the Ethereum Foundation.
Exchange netflows for Ethereum hit a record high of 79,000 ETH on October 3, the most since May 16.
On-chain experts discovered on Monday that a wallet address connected to the Ethereum Foundation was selling 1,700 ETH on Kraken. This sparked worries about an impending price drop throughout the market. The main elements that could have an effect on ETH pricing in the coming weeks are examined via on-chain analysis.
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1,700 ETH Were Paid Out to the Ethereum Foundation through Kraken Exchange
On October 9, the price of Ethereum (ETH) fell below $1,600, which was a result of a big withdrawal from a wallet linked to the Ethereum Foundation.
According to blockchain analytics company Arkham Intelligence, on Monday 1,700 ETH (or $2.73 million) were transferred from the foundation’s Ethereum wallet to the Kraken market.
According to historical statistics, there have frequently been significant price corrections following Ethereum Foundation withdrawals that have occurred in tandem with regional price maxima.
The price of ETH fell by 14% in less than a week after the foundation sold 14,999 ETH for $30 million on May 6, as the data below illustrates.
Ethereum Foundation’s $3 Million Cash Out: What’s Next for ETH?,Ethereum Foundation’s $3 Million Cash Out: What’s Next for ETH?
After this most recent $2.73 million withdrawal, the price of ETH dropped by 2% and on Monday it fell below the crucial $1,600 support level.
In the upcoming weeks, Ethereum’s price may drop much lower around $1,500 if the current negative pattern is a reflection of the pattern seen following the $30 million transaction in May.
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Furthermore, only a few days before to this Ethereum Foundation transaction, on October 3, Ethereum exchange netflows hit a 5-month high of 79,000 ETH.
This suggests that the Ethereum ecosystem is becoming more pessimistic, with more investors maybe looking to sell their holdings soon.
Ethereum’s price is expected to see downward pressure in the near future until there is a dramatic change in the mood of the market as a whole.
Ethereum Foundation’s $3 Million Cash Out: What’s Next for ETH?,Ethereum Foundation’s $3 Million Cash Out: What’s Next for ETH?,Ethereum Foundation’s $3 Million Cash Out: What’s Next for ETH?