Ethereum Foundation moves 20,000 ETH to Kraken, increasing risks of sell-off
- Ethereum Foundation has sent 20,000 ETH tokens to Kraken; analysts expect a correction in ETH price.
- At the peak of the 2018 cycle, Vitalik Buterin convinced the foundation to sell 70,000 ETH to pay developers ahead of a bear market.
- A mysterious Ethereum whale has recalled a long position worth $2 billion, indicating a likely crash in ETH price.
Analysts expect the altcoin’s price to drop due to Ethereum Foundation’s transfer of 20,000 ETH to Kraken. The Ethereum Foundation has previously sold Ethereum tokens to pay developers in 2018 and early 2021.
ETH risks sell-off with the transfer of 20,000 tokens to Kraken
The Ethereum Foundation has transferred $9.5 billion worth of ETH tokens (20,000) to cryptocurrency exchange Kraken. The proceeds from the sale would be used to compensate developers.
In May 2021, the foundation sold Ethereum tokens before the onset of the bear market. Colin Wu, a Chinese journalist, recently revealed that the 2018 sale of ETH tokens was initiated when the altcoin was at the peak of its cycle.
The Ethereum Foundation transferred 35,000 Eth to the Kraken Exchange on May 17. Vitalik said bubbles could have ended already on May 20. https://t.co/QDhAeExC79 pic.twitter.com/j7NDfkqBoJ
— Wu Blockchain (@WuBlockchain) May 21, 2021
Historically, a sale of ETH tokens by the Ethereum Foundation has triggered a sell-off. Traders consider that Vitalik Buterin times the sale ahead of a drop in ETH price, as seen in 2018.
The recent transfer (November 11) triggered a whale’s movement on Bitfinex. A mysterious whale recalled a long position in Ethereum worth $2 billion on Bitfinex. The exchange notes that there was no significant impact on ETH price as the position was recalled.
Analysts expect a 20-30% drop in Ethereum price in light of the two events.
@Pentosh1, a cryptocurrency analyst, is of the opinion that the crypto market has been on the easy mode with less volatility than usual. He expects a 20-30% dip in Ethereum price.
Seeing some of the replies this morning. I actually hope we giga-nuke. Market has been on easy mode for months and people can barely handle a 2% dip
— Pentoshi Won’t Dm You. hates Dm’s. DM's are scams (@Pentosh1) November 12, 2021
I would love a 20-30% wipe out on alts. Usual bull run dip. Just bc I want it doesn't mean it will happen. Greed to fear please https://t.co/Q3QDa5tNQq
FXStreet analysts have evaluated the ETH price trend and predicted that the altcoin is on track to hit $6,000 in the current cycle.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
