- Luke Martin anticipates a bullish market ahead despite the Ethereum Foundation’s recent sale of 15,000 ETH to Kraken.
- Martin analyzed the history of the Ethereum Foundation’s sales of ETH and pointed out its impact on the local market.
- The massive transfer of ETH to Kraken by the Ethereum Foundation could create market instability, but Martin remains optimistic about its future impact.
Luke Martin, a renowned travel blogger, and vlogger, offered his views on the Ethereum Foundation’s recent transfer of 15,000 ETH to Kraken, a popular cryptocurrency exchange, through his YouTube channel, which bears his name. According to Martin, the ETH sale was a positive development for the cryptocurrency community, as he foresees a bullish return on investment despite the significant transfer of funds.
According to Lookonchain, a data analyst specializing in on-chain analytics, Vitalik Buterin, one of the co-founders of the Ethereum blockchain, made a tweet on May 5th revealing that he had transferred 200 ETH, which was valued at $396k, to Kraken. Following this, the Ethereum Foundation also reportedly moved a substantial amount of 15,000 ETH, equivalent to $29.7 million, to the same exchange.
Ambiguity looms over the ETH price trend
The unexpected transfer of a substantial amount of ETH has sparked uncertainty and tension among traders and investors, who are now anxious about the potential surge in the price of ETH. Even though there was confidence in the cryptocurrency’s upward trend, the large-scale offloading of ETH has caused concern among investors.
After uncovering some information, Martin took to Twitter and wrote a thread to analyze the history of the Ethereum Foundation’s sales of ETH. He pointed out that these sales coincided with the highest points in the local market in five instances.
In a video, Martin presented a drawing outlining the plan of the Ethereum Foundation and Vitalik Buterin to periodically sell their entire Ethereum holding, which currently amounts to approximately 2.9 million, to raise funds for the continued development and growth of the Ethereum ecosystem.
Ethereum’s massive ETH sale impact
According to the blogger’s observations, although transferring ETH may benefit the platform, it could negatively affect the overall cryptocurrency market. The possibility of selling large amounts of ETH could result in market instability and unpredictability, which could cause a decline in the market, mainly due to the platform’s substantial ETH holdings.
Martin reminded the audience of a significant event in 2017, where 80,000 ETH was sold for nine dollars, and he used this example to assure them that the current sale is not a cause for concern. He expressed his optimism that positive developments would soon follow the sale of ETH, which could increase the market’s bullish sentiment.