In This Post:
- Ethereum Foundation sells 35,000 ETH, causing a big price drop.
- Similar past sales by the Foundation led to price crashes.
- Large investors are buying the dip, hinting at a possible recovery.
Ethereum Foundation Causes Price Drop
Ethereum’s price dropped by 12% recently. This happened because the Ethereum Foundation sold 35,000 ETH on August 23. The sale was worth $94 million. After the sale, the price of Ethereum fell from $2,699 to $2,387 by August 27.
This isn’t the first time this has happened. Every time the Foundation sells a large amount of ETH, prices usually drop. For example, in May 2023, they sold 15,000 ETH, and the price dropped by 16% in a month.
The Foundation still holds 274,000 ETH, worth around $675 million. Investors are worried that if they sell more, prices might fall again.
Past Sales and Market Reactions
When the Ethereum Foundation sells ETH, it often leads to a price drop. Traders see these sales as a sign that the market might go down. The recent sale on August 23 followed this pattern, with Ethereum’s price dropping by over 14% in just five days.
But there’s some hope for a recovery. After hitting a low of $2,392 on August 27, Ethereum’s price has bounced back by 4%. However, a full recovery might depend on Bitcoin’s performance.
Big Investors Are Buying
A good sign for Ethereum is that big investors are buying during the dip. These large trades, often called “whale” transactions, involve $1,000,000 or more. When big investors start buying, it can mean that prices will go up again soon.
For Ethereum to recover fully, Bitcoin needs to do well too. If Bitcoin can stay above $60,000, it could help Ethereum rise back to $2,618. But if Ethereum doesn’t recover, it might drop further to $2,190.
In summary, while Ethereum’s price drop is concerning, the actions of big investors and the potential for a market recovery suggest that Ethereum could bounce back soon. Keep an eye on Bitcoin, as it will likely influence what happens next with Ethereum.
