A suspicious $654 million ETH transaction has been identified on Ethereum Foundation's official wallets, sparking fears of a potential market crash. Analysts suggest strategic motives behind the move amidst existing market fragility, raising concerns of a possible major correction.
Arkham Intelligence has established itself as an essential reference in on-chain analysis. The platform is capable of identifying significant fund movements before they impact the market. It has detected this massive ETH transfer that stands in stark contrast to the Ethereum Foundation’s recent patterns. Over the past month, the organization had only conducted modest sales, typically under $10 million, primarily intended to fund independent DeFi projects.
This sudden escalation raises questions. The recipient wallet has historically been used for selling operations, which naturally fuels fears of downward pressure on ETH. In a context where volatility remains high and investors scrutinize every signal, such volume could create a temporary imbalance between supply and demand.
Experienced traders know that a liquidation of this magnitude never happens all at once. The Foundation will likely employ a staggered selling strategy to minimize the impact on current support levels. Nevertheless, the announcement alone is enough to shift market sentiment and encourage a certain caution among ETH holders.
Large transfers often create panic… but these moments are also when opportunities arise. If the Ethereum Foundation transfer doesn’t result in a sale, the market could quickly reverse and offer a powerful rebound. To benefit before everyone else, Bitget remains the most reliable and fastest platform to buy or trade ETH safely.
A hypothesis circulates insistently in the community: this transfer could serve to build a reserve aimed at better compensating the core developers of Ethereum. This theory makes perfect sense in light of the recent resignation of Péter Szilágyi, a veteran developer from the Geth team. In his public statements, he openly criticized the Foundation’s salary policy. He asserts that core developers were significantly underpaid relative to their technical contribution.
This internal tension isn’t new, but it’s now reaching a breaking point. Developers who maintain Ethereum’s critical infrastructure deserve compensation commensurate with their expertise. This is especially true in an ecosystem that processes billions of dollars daily. If the Foundation indeed decides to allocate a substantial portion of these funds to technical talent, it could strengthen the network’s long-term stability.
However, let’s remain cautious: no official confirmation has been communicated by the Ethereum Foundation. Everything currently rests on circumstantial evidence and statements from community members. Markets hate uncertainty, and this gray area maintains psychological pressure on ETH’s price.
Market analysts are adopting a wait-and-see but vigilant posture. A $654 million sale wouldn’t go unnoticed, even for an asset with Ethereum’s liquidity. Current resistance levels could be tested if the Foundation proceeds with a gradual liquidation over several weeks. Conversely, if these funds are used solely for internal operations without directly touching exchange markets, the impact will remain limited.
The timing of this operation is also intriguing. Ethereum is going through a pivotal period with ongoing developments around scaling and the post-Merge roadmap. Any disruption in market sentiment could delay the bullish recovery that many anticipate for the coming months. Traders are now closely monitoring on-chain flows to detect the first signs of an effective sale.
For now, caution remains advisable. Leveraged positions on ETH carry increased risk until this situation is clarified. The Foundation’s transparency will be crucial in restoring confidence and avoiding excessive volatility.
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