In the midst of the strong profit-taking in ether (ETH) that led to its price drop, it has been noted that even the Ethereum Foundation has been part of this scenario.
This organization, which is dedicated to promoting the growth of the Ethereum network, sold 800 ETH for almost 2 million DAI in less than a week. It should be noted that this figure is equivalent to US dollars (USD), since it is a stablecoin.
DAI is the third stablecoin with the highest market capitalization after tether (USDT) and USD Coin (USDC). Its price, like the other two, tries to remain the same as that of the US dollar.
Ethereum Foundation ether sales were made at an average price of $2,422 per coin across multiple transactions. As the following image from on-chain explorer Spotonchain shows, 700 of the 800 ETH were sold specifically on January 22.
Specifically, to make such sales, the organization transferred 2,000 ETH from its address 0xde0 to another named 0xbc9. This occurred on January 10 and 11 just after the approval of spot bitcoin exchange-traded funds (ETFs) in the United States.
However, it was not until January 22 that 700 ETH was sent from 0xbc9 to address 0xd77, which sold them for DAI via Cow Protocol and transferred them back to the Ethereum Foundation address 0x9ee. In this way, he added to the sale of 100 ETH that he had made days ago. You can see this in the images below.
The Ethereum Foundation caused the price drop of ETH
With this move, the Ethereum Foundation was part of the market selling pressure that drove the price of ETH that day to its 2024 low that drove the price of ETH that day to its 2024 low around $2,100. This drop occurred two weeks after the coin hit $2,600, its highest in nearly two years.
The price decline occurred due to widespread profit-taking in the market after the launch of spot bitcoin (BTC) ETFs in the United States, an event that before it arrived led to a strong rise due to expectations for it to come to fruition.
At the time of writing, ETH registers a slight price recovery, trading at $2,200, as seen on the TradingView chart. This movement is in line with bitcoin, which returned from $38,000 to $39,000-40,000.
