Ethereum (ETH) prices were on a roll last week, boosted by positive news about a potential interest rate cut from the Federal Reserve. But a big sale by the Ethereum Foundation (EF) has some people wondering if the party is over.
The EF’s Big Move
The EF, a non-profit organization that supports the Ethereum network, has been selling small amounts of ETH for a few months. But last week, they made their biggest sale of the year, dumping 35,000 ETH worth $93.8 million onto the Kraken exchange.
This move has sparked speculation, with some people interpreting it as a bearish signal. After all, the EF is closely tied to the Ethereum network, so their actions are closely watched.
Is This a Bearish Signal?
While ETH prices did dip slightly after the sale, the overall market sentiment remains bullish. Experts are still predicting an interest rate cut in September, which would be good news for cryptocurrencies.
Plus, the recent price surge may help to offset the expiry of 140,000 ETH options, as the current price is above the “max pain” point for these options. This means that the options holders would lose the most money if the price stayed at this level when the options expire.
The Big Picture
Despite the recent sale, the EF still holds a large amount of ETH, worth over $750 million. So, while the sale was significant, it doesn’t necessarily mean they’ve lost faith in Ethereum.
The long-term outlook for ETH remains uncertain. While the recent price gains are encouraging, the price is still below its monthly high. Only time will tell if the EF’s sale was a sign of things to come, or just a blip on the radar.
