Ethereum Foundation Sells $30M in Ether – Will Prices Fall?

• The Ethereum Foundation just sold $30M in Ether, causing a 4.8% drop in ETH price.
• The 50-day EMA acted as a key support level for the ETH price, allowing it to recover modestly.
• Exchange balances across all exchanges decreased despite the Ethereum Foundation’s transfer, suggesting that any potential sell-pressure can easily be absorbed.

Ethereum Foundation Transfers $30M in Ether

The Ethereum Foundation recently made a large transfer of nearly $30 million in Ether (ETH) to the Kraken cryptocurrency exchange on May 6th, resulting in jitters throughout the crypto market and causing the ETH price to drop by 4.8%.

50-Day EMA Acts as Key Support Level

Fortunately, Ether’s price recovered modestly after testing its 50-day exponential moving average (50-day EMA; the red wave) near $1,850 as support a day ago. Moreover, volatility dropped on Kraken during this period due to the contracting Bollinger Bands width which further showed traders’ calmness amidst the Ethereum Foundation transfer. Despite this brief dip below its 50-day EMA support line earlier this year in March, ETH bulls are attempting to take the price above $2,000 again and build upon its multi-month recovery trend from June 2022 bottom of $880.

Exchange Balances Remain Low

Interestingly enough, despite the large amount transferred by the Ethereum Foundation into Kraken exchange’s balance increased only slightly from 1.83 million ETH to 1.84 million on May 6th while exchange balances across all exchanges dropped from 18.22 million to 18.15 million ETH even with this transaction; indicating that any potential sell pressure can be absorbed without having too much of an effect on market prices overall.

Will This Affect Market Prices?

While there is little evidence that such sales affect general market trends or prices significantly – previous big sales of ETH have preceded bear markets – many traders remain cautious when it comes to large amounts being sold off simultaneously like what happened here with this Ethereum Foundation transfer; nonetheless it will be interesting to observe how prices will move going forward based on news such as these transfers and other macroeconomic events taking place around crypto markets right now..


In conclusion, we should keep an eye out for how these developments will affect crypto markets going forward but ultimately any potential sell pressure caused by large transfers such as this one appears minimal at best due to low exchange balances remaining constant throughout them despite their size; however only time can tell if such events are truly indicative of bear markets ahead or not so stay alert!