Large transfers in Ethereum! Is the foundation manipulating the market? ETH prices are at risk of a sharp drop!
Recently, Ethereum, the second largest digital asset by market value, has once again become the focus of attention. The Ethereum Foundation's recent ETH transfer activities have not only attracted widespread attention in the cryptocurrency market, but also sparked heated discussions among market observers about the potential volatility of Ethereum prices.
According to reports, the Ethereum Foundation recently made a series of large ETH transfers to a multi-signature address called "0xbc9". Since the beginning of 2024, the foundation has transferred up to 5,000 ETH to this address. The latest transaction of 1,000 ETH (about $3 million) has added fuel to the fire of this discussion.
Currently, the price of Ethereum is trying to break through the resistance level of $3,200, but this series of transfers by the foundation has undoubtedly brought more uncertainty to the market environment. The price of ETH is currently hovering below $3,000, and the market is worried whether these large transfers will exacerbate its price decline. Some analysts even predict that the price of ETH may fall to $2,500, which undoubtedly increases market uncertainty.
It is worth noting that of the ETH transferred to the "0xbc9" address, 1.76 ETH was quickly sold for 4.8 million DAI in a short period of time, with an average price of $2.72 per ETH. Worryingly, these sell-offs seem to always be accompanied by a drop in the price of ETH, which makes people wonder whether there is a possibility of price manipulation. Historical data also shows that there is a certain correlation between the foundation's sell-off and the downward pressure on the price of ETH.
Despite the uncertainty in the market, the Ethereum ecosystem is still developing steadily. The continuous introduction of Ethereum Improvement Proposals (EIPs) shows the community's unremitting efforts to improve the network's functionality and scalability. In particular, EIP-7702 has become a replacement for EIP-3074, which fully demonstrates the community's determination to solve challenges.
In addition, Ethereum's successful transition from proof of work (PoW) to proof of stake (PoS) consensus mechanism has also continued to be the focus of market attention. Especially after the Dencun upgrade in March this year, the changes in the network's inflation dynamics have triggered in-depth discussions about its long-term sustainability.The significant reduction in the growth of ETH's circulating supply resulting from this upgrade marks a major shift in the cryptocurrency's economic model.
Looking ahead, all eyes are on Ethereum’s price action as the crypto community anticipates and prepares for the future. Amid market uncertainty, Ethereum’s potential rebound has become the focus of attention. There are reports that its momentum is recovering.
