Ethereum Foundation dumps $13m worth of ETH amid price pump

The Ethereum foundation has been on a selling spree, cashing out part of its ETH holdings as the token rallies to its strongest levels in years.

On-chain data has shown several wallet movements by the Ethereum foundation over the last 24 hours, commencing with a 1,695 ETH (ETH) sale spotlighted by Lookonchain on August 13.

Exchanged for a total $7.7 million DAI (DAI), the sale was soon followed by another 1,100 ETH dump for $5.06 million, bringing the total offloaded so far to approximately 12.8 million.

The wallet originally received the assets back in 2017 from another wallet linked to the foundation, labeled “EF 1.” The latest sales come amid ETH’s sharp rally, executed as prices hit new multi-month highs.

ETH jumps 8%, targets all-time high

Trading just under $4,635 at the time of writing, Ethereum has climbed roughly 8.3% over the past 24 hours, extending the month-long rally that has broken its previous trend of underperformance.

The second-largest crypto asset touched an intraday high of $4,683, levels last seen in November 2021. The rebound in ETH’s price is driven by strong institutional demand, led by exchange-traded funds and major corporate acquisitions.

Recently, Ethereum ETFs recorded a historic single-day inflow of $1.02 billion, marking a five-day streak of strong fund flows. Corporate treasury bets on ETH have also grown in recent months months, with more than $14 billion committed so far across various entities.

These combined flows are fueling expectations for ETH to retest its $4,800 all-time high, with many investors and market watchers anticipating a breakout beyond that level.

Meanwhile, the latest asset dump by the Ethereum Foundation is not isolated, and builds on its broader track record of sales.

Why is the Ethereum Foundation dumping ETH?

Large-scale asset shuffles from the Foundation have often raised eyebrows, especially when they come in sizable batches like the latest sale. The last such transaction was in January, which drew significant backlash from the community at the time for price impact.

However, the team has maintained that these are not mere profit-taking efforts, but planned sales aimed at maintaining the ecosystem.

Aya Miyaguchi, the president of the Foundation, previously noted that the sales are primarily used for expenses like operational costs, grants, salaries, and others that often require the Foundation to convert some of its holdings into stablecoins.

ETH’s strong price performance has so far muted concerns over market impact, but a continued selling trend could once again spark criticism over the Foundation’s timing and strategy.