- The Ethereum Foundation’s recent ETH sales have fueled negative sentiment, impacting Ethereum’s price recovery.
- While Ethereum ETFs face $550 million in outflows, Bitcoin ETFs see strong inflows, highlighting a growing demand disparity.
- Despite a recent 8% drop in ETH price, the community holds hope for EIP 7781’s potential to spark a future recovery.
The Ethereum Foundation has been selling a sizable quantity of ETH, which has reduced expectations for Ethereum’s 2024 price increase. On October 7, 1,250 ETH, or $3.03 million, were put into Bitstamp via a wallet connected to the Foundation. This movement is in line with the sales of more than 45,000 ETH made since September by a major Ethereum ICO participant.
The sell-off has only added to the negative sentiment about Ethereum underperforming against Bitcoin. Ethereum ETFs have had significant outflows at a time when the demand is growing in Bitcoin ETFs.
Ethereum Sell-Offs Continue to Weigh Down Sentiment
In recent months, the Ethereum Foundation and other important players have increased their ETH sales. The Foundation has made $10.46 million from the sale of 3,766 ETH since September. Additionally, a whale that had 150,000 Ethereum during the ICO sold 45,000 of the tokens, bringing in $113.2 million. The price of ETH has struggled to rebound due to the additional pressure these sales have placed on it.
Moreover, the recent $550 million withdrawals from Ethereum ETFs demonstrate the widening gap in the market demand for Ethereum and Bitcoin. Over $235 million in inflows have been made into Bitcoin ETFs in a single day, bringing the total inflows since January to $18.7 billion.
ETH Underperforms Despite Market Conditions
Although there was a brief bounce following the Federal Reserve’s 50 basis point rate decrease, positive US jobs figures have dashed expectations of another rate cut this year. As a result, Ethereum’s price has experienced more corrections than Bitcoin’s, dropping by around 8% over the last week.
Furthermore, the Ethereum community is still optimistic about the long-term effects of the impending EIP 7781 proposal, even though ETH is down 0.92% to $2,433.55. This plan might give Ethereum the impetus it needs for a future price rebound, along with any changes in the market.
