Ethereum Foundation Moves 160k ETH Amid ETF Outflows
On October 21, the Ethereum Foundation transferred 160,000 ETH (about $654 million) to a wallet previously used for large token sales. Arkham Intelligence flagged that the receiving address had funneled ETH to exchanges like Kraken and SharpLink Gaming, triggering speculation of a liquidation. However, co-Executive Director Hsiao-Wei Wang clarified that the transfer was a scheduled wallet migration, not a sale. The Ethereum Foundation has been streamlining operations amid governance reforms and staffing cuts. It now limits ETH liquidations to under $10 million to fund research and grants. The move coincided with US spot Ether ETFs suffering $145 million in net outflows on October 20 and nearly $500 million over two weeks. After peaking near $4,959 in August, ETH now trades around $4,000, testing $3,900 support. Analysts note that a sustained close above $4,100 could reignite a bullish run to $5,800. The Ethereum Foundation still holds roughly $827 million in tokens, mainly ETH, along with BTC, BNB and ARB.
Neutral
The Ethereum Foundation’s operational wallet migration and limited ETH liquidations aim to improve transparency without signaling a market sell-off. While ETF outflows have applied downward pressure on ETH’s price, the clarification from the foundation reduces uncertainty and limits abrupt price swings. In the short term, this neutralizes selling pressure and may stabilize ETH around key support levels. In the long term, periodic strategic liquidations for funding, combined with governance reforms, are unlikely to drive significant price declines. Overall, the structured wallet migration and communication suggest a neutral impact on ETH’s market trajectory.