Ethereum foundation sells 700 ETH

History tells us that sell offs from the Ethereum Foundation often correlate with hefty volatility. Will that happen again this time?

The Ethereum Foundation has sold $1.6 million worth of Ether. This is according to on-chain data from Arkham Intelligence. According to the data, the organization responsible for developing the Ethereum blockchain sold 700 ETH at a price of USD 2,400 each. This process in itself is not unusual. For development and research in the Ethereum ecosystem, the organization sells ETH and other cryptocurrencies from time to time.

Looking at history, however, it appears that this often happens during local price spikes. As a result, this sell-off could also lead to continued price weakness for the number two stock in the sector. On the other hand, sell-offs usually happen with significantly larger volumes of Ether than yesterday's. For example, the Foundation sold 35,000 ETH in May 2021, after which the price corrected by more than 25 percent.

Yet this trend appears to be continuing for now. Over the past 24 hours, the ETH price has fallen nearly six percent. Over the entire week, the price is now down 11.9 percent.