News of the Ethereum Foundation depositing 35,000 ETH into crypto exchange, Kraken on Friday took the market by storm with community members seeking an explanation. However, Ethereum Foundation member Aya Miyaguchi cleared the air stating that the recent ETH movement was part of their treasury management activities.
Ethereum Foundation on ETH Sell-off
Offering insights into the Foundation’s treasury management activities, Aya Miyaguchi stated that the Ethereum Foundation operates with an annual budget of approximately $100 million, primarily allocated towards grants and salaries. She added that some of the recipients of the funds can only accept fiat currencies.
Miyaguchi further explained that this year due to regulatory complexities, the Foundation experienced extended advisories against conducting treasury activities. As a result, there was a delay in disclosing their plans in advance.
Miyaguchi also clarified that the recent transaction of 35,000 ETH is not part of the sale, adding that Ethereum Foundation’s strategy involved planned and gradual sales moving forward.
As a result, despite this move from the Ethereum Foundation, there was no major sell-off pressure on the ETH price. Instead, the Ethereum price has been enjoying a strong rally to $2,750 fueled by Jerome Powell’s clear hint on the Fed rate cuts coming next month in September.
Popular technical analyst Benjamin Cowen shared a chart stating that the ETH price still continues to trade under its 20-week simple moving average (SMA), while Bitcoin (BTC) and altcoins have already reached their bull market support bands.
He added that the ETH price might close this gap by the time the Federal Reserve cuts rates in a few weeks, potentially mirroring the patterns seen in 2016 and 2019 when ETH rallied around September 19-20.
Vitalik Buterin’s Emphasis On Layer 1 Robustness
In one of his recent tweets, Vitalik Buterin praised the resilience of Ethereum’s Layer-1 network. Citing data from Supermajority, Buterin showed that no single execution client holds more than two-thirds market share.
Earlier this week, Buterin also highlighted several other milestones achieved by the Ethereum network shrugging off concerns regarding the weakness in the Ethereum ecosystem.
