The Ethereum Foundation has executed another significant sale of Ether (ETH). This move has sparked renewed anxiety among investors. Some of them are actually in panic.
On September 23, the Foundation offloaded 200 ETH. On-chain data reveals two separate transactions of 100 ETH each.
This sale follows a pattern of liquidation. Just three days prior, the Foundation sold 300 ETH for $763,000 in DAI. The latest sale netted approximately $528,000 in DAI.
Spot on Chain reports accelerated liquidation throughout September. The Foundation has sold 1,150 ETH for about $2.8 million this month.
Total sales for 2024 now stand at $10 million, with 3,566 ETH offloaded.
The Foundation's current portfolio is valued at $726.7 million. Of this, $724.38 million is in ETH.
Surprisingly, Ether's price has risen despite these sales. It currently trades at $2,664, up 4.07% in 24 hours and 17.09% over the week.
While some investors started to raise questions about potential troubles in the Ethereum world, many analysts suggest the Foundation might be selling to reduce market volatility. They propose the conversion to DAI aims to maintain stable value amid fluctuations.
However, this strategy has also raised transparency concerns. Critics question whether the Foundation is properly disclosing its financial activities.
Josh Stark, a Foundation representative, announced an upcoming report on 2022 and 2023 spending. This move aims to address transparency worries. Meanwhile, Ethereum faces continued outflows. CoinShares data shows weekly outflows of $28.5 million. This trend persists even after the Federal Reserve's recent 50 basis point rate cut.
Monthly outflows for Ethereum have reached $145.7 million. This contrasts sharply with Bitcoin's inflows of $284 million weekly and $76 million monthly.
These figures suggest institutional caution towards Ethereum. This sentiment prevails despite macroeconomic conditions typically favoring riskier assets.
Coinglass data shows increased activity in Ethereum futures. Open interest rose 0.69% to $12.09 billion. Derivatives volume surged 77.12% to $28.37 billion. This growth in trading interest raises questions about Ethereum's trajectory: while some traders prepare for market movements, ongoing outflows indicate investor distrust.
The Ethereum Foundation's actions and market trends paint a complex picture. Transparency and market confidence remain key concerns in this evolving situation.