Will Buterin’s Massive ETH Dumping Result in a Bullish Market?
- The blogger stated that the platform sells the holdings to fund the development of the ETH ecosystem.
- Martin predicted a bullish return of ETH following the dumping of the cryptocurrency.
The travel blogger and vlogger Luke Martin, on his self-titled YouTube channel, shared insights on the Ethereum Foundation’s 15,000 ETH recently moved to the crypto exchange Kraken. Martin bestowed the crypto community with an optimistic view of the ETH sale, predicting a bullish return of ETH despite the massive transfer.
On May 5, as per a tweet shared by the on-chain data analyst Lookonchain, Vitalik Buterin, the co-founder of the Ethereum blockchain transferred 200 ETH worth $400,000 to Kraken. Subsequent to the move, the Ethereum Foundation too had a massive transfer of 15,000 ETH, amounting to $30 million to the same exchange.
Significantly, such a sudden move of the whopping ETH has created ambiguity and pressure among investors and traders, worrying about the possibility of increasing ETH price pressure. Though recently, investors held confidence in the cryptocurrency’s bullish tendency, the huge dumping of ETH has raised concerns among them.
Following the revelations, Martin shared a Twitter thread, after a detailed study of Ethereum Foundation’s ETH selling history, citing “5 of their last sells were local tops”:
Subsequently, in his video, Martin shared a sketch of the Buterin’s and Ethereum Fundacion’s strategy in periodically selling the total ETH holding, which is nearly 2.9 million, to “fund development of the Ethereum ecosystem”.
Notably, the blogger commented that though the transfer of ETH focuses on the benefit of the platform, it would sometimes have a negative impact on the crypto space as a whole; the sale might “spook the market” as the platform is a huge holder of ETH.
However, Martin took the spectators back to 2017’s massive sale of 80,000 ETH at nine dollars, indicating that the current sale isn’t a case to worry about. He added that he expects the occurrence of “bullish news” that would follow the dumping of ETH.