- A recent observation by an investor or trader, known as Edward Morra, revealed that the sell-offs by the Ethereum Foundation can be seen to move parallelly with Ether’s all-time highs.
- The Ethereum Foundation has executed some sell-offs earlier as well. It sold 20,000 Ether back in November 2021 and another 35,000 in May 2021, Ether being at its all-time highs at the time.
- At the time of writing, Ethereum ($ETH) is trading at $2,405.46 after facing a downtrend of about 3.89% in the past 24 hours. The market dominance of Ethereum has fallen to 17.88% and a drop of 38.89% has been observed in trading volume over the last 24 hours.
Any proficient investor’s advice for market timing would be to purchase the dips and sell the upswing. However, in real-time, such scheduling is rarely exact. However, a new discovery by trader Edward Morra appears to show that Ethereum’s all-time highs are coinciding with Ethereum Foundation sell-offs.
Ethereum is managed by the Ethereum Foundation (EF), a non-profit organization. Unlike some other non-profits and corporations, this group promises to sponsor crucial network progression whilst leaving the network self-contained. The Ethereum Foundation has about 353,318.436 Ether coins worth approximately $895 million, according to the data of trader’s wallet address from etherscan.
Ethereum Foundation’s Previous Sell-Offs
The foundation sold out about 35,000 ETH on 17 May and 20,000 ETH in November 2021 at its corresponding highs, according to the trader. When the currency was valued at $4,722.68/ETH, one similar transfer to Kraken, a cryptocurrency exchange platform, has been depicted below.
This lends validity to the idea that ETH is security, one Twitter user said. In an interview with CNBC, Senator Cynthia Lummis stated that, aside from Bitcoin, all other cryptocurrency assets appear more like stocks. Other crypto-assets, she asserted, are not as decentralized as Bitcoin, and their creators keep a substantial share of the product for themselves. Is the Ether treasure of the Ethereum Foundation proving that point?
Is Ethereum A Security?
In the current Ripple and SEC litigation, Ethereum’s security status is critical. Particularly when previous SEC director William Hinman’s statements regarding Ethereum being not security are taken into account. Despite the fact that Ethereum is rapidly shedding market share to rivals like Solana, it still controls about 59 percent of the TVL (Total Value Locked) on DeFillama. And, with ETH 2.0 on the horizon, there appears to be a lot of excitement surrounding the initiative. Meanwhile, it’s worth noting that ETH is the most popular cryptocurrency on Whale Stats. This might imply that leading whales are expanding their ETH holdings to include other cryptocurrencies. Some instances can be seen below.