A member of the Ethereum Foundation has recently addressed investors’ concerns following an enormous ETH transfer by the non-profit organization on Friday.  This development is especially vital as this transaction sparked bearish talks within the crypto community especially on account of EF’s association with the Ethereum network.

$94 Million ETH Transfer Not A Selloff – Ethereum Foundation

On Friday, the Ethereum Foundation deposited 35,000 ETH, valued at $93.8 million, on the Kraken exchange resulting in much speculation amongst ETH. These concerns stemmed from the bearish nature of such massive transactions in addition to the role of the EF within the Ethereum ecosystem. 

Described as a non-profit organization, the EF claims a critical role in sponsoring technological development of the Ethereum network. Due to this fact, a sudden ETH offload of this size is sure to attract attention from investors and general market enthusiasts. 

In an X post on Saturday, Aya Miyaguchi, Executive Director of the Ethereum Foundation, explained the recent transaction stating it was not “equal to a sale” but slightly a process in managing the organization’s treasury. Miyaguchi claims the ETH deposited on Kraken was swapped for fiat to settle certain obligations. The EF director also attributed the large ETH withdrawal to a previous constraint on treasury activities on account of regulations-related issues. 

Miyaguchi said: 

EF has a budget of ~$100m per 12 months, which is essentially made up of grants and salaries, and a few of the recipients are only able to simply accept in fiat. This 12 months, there was a protracted time period after we were advised to not do any treasury activities on account of the regulatory complications, and we weren’t capable of share the plan upfront.

Prior to this 35,000 ETH transfer to Kraken, the EF had been offloading significant quantities of  ETH in 2024, which stood at 2,516 ETH for $7.4 million DAI. Aya Miyaguchi has stated that the Ethereum Foundation will maintain this constant ETH selloff in a “planned and gradual” manner.

ETH Price Overview

In response to data from CoinMarketCap, ETH currently trades at $2,748 with a slight gain of  0.63% within the last day. The second largest cryptocurrency is currently stuck in a range-bound market between $2500 – $2800. If ETH bulls can establish market control, the altcoin may break upward from this consolidation with its next major resistance set at $3560. Nevertheless, a reverse scenario could end in massive selling pressure driving Ethereum’s price as little as $2100.

Featured image from INX, chart from Tradingview