While Bitcoin (BTC) and altcoins experienced serious declines in August, the largest altcoin, Ethereum, drew attention with its 23% decline in a month.
What Are the Four Major Events That Influenced the Ethereum Drop?
Behind Ethereum’s decline are the sales of the Ethereum Foundation, market makers, and whales, while blockchain analytics platform Spot On Chain has detected four major sales in ETH, which has experienced two sharp declines in the past month.
Accordingly, the first event was the Ethereum Foundation's sale of 35,400 ETH worth $94 million. On August 23, the Ethereum Foundation deposited 35,000 ETH (worth $93.8 million) to Kraken. 5 days later, the ETH price dropped by about 9%.
The second was the sale of 88,900 ETH by one of the popular market makers, Jump Trading. Between July 25 and August 6, Jump Trading deposited 88,917 ETH (worth $276 million) into various CEXs. On August 5, the $ETH price dropped by 20%.
The third was a 48,500 ETH sale by an ICO-related whale, and the fourth was a 25,000 ETH sale by a diamond hand whale address starting with 0x682. The ICO whale deposited 48.5K ETH (worth $154 million) into OKX at $3,173 since July 9, while the diamond hand whale deposited 25K ETH (worth $73.9 million) into Kraken twice since July 25, both preceding significant price declines.
“ETH has suffered two painful declines in the past month.
Here we highlight the 4 key forces likely behind the 197.8K ETH (worth 599 million) sell-off, which are contributing to the recent declines.
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Ethereum Foundation Is Selling At The Top!
The Ethereum Foundation appears to have sold off another high, selling $94 million worth of ETH last weekend.
Stating that the ETH Foundation has sold 239 thousand ETH since 2021, Lookonchain said that the foundation generally sells near the top.
After the recent decline of the ETH Foundation, Ethereum fell by 8.8% to $2,450.
“Ethereum Foundation deposited 35k ETH (worth $94.07M) to Kraken at $2,688 5 days ago, currently ETH is down 8.8% to $2,450.
Ethereum Foundation sold near the top again!
Since January 1, 2021, the Ethereum Foundation has sold 239 thousand ETH ($654 million).
The Ethereum Foundation currently holds 273,542 ETH (worth $666 million).
https:/twitter.com/lookonchain/status/1828702065427882440
*This is not investment advice.