“Buy the dips and sell the rally,” would be the advice of any seasoned trader for timing the market. But, this timing can rarely be accurate in real time.
But, interestingly, a recent observation by trader Edward Morra seems to suggest that Ethereum’s all-time highs are matching with the sell-offs by Ethereum Foundation.
The Ethereum Foundation (EF) is the non-profit organization behind Ethereum. Unlike typical nonprofits and businesses, this organization claims to fund critical network development while keeping the network independent of itself.
As per the wallet address shared by the trader, Ethereum Foundation holds close to 353,318 Ether tokens valued at over 895 million, at the time of writing.
Prior to January, the trader noted that the foundation cashed out 35,000 ETH on May 17 and 20,000 ETH in November 2021 at their respective highs.
One such transfer to crypto-exchange Kraken is shown below when the token was priced at $4,722.68/ETH. At press time, ETH was valued at close to $2,500.
What does this indicate?
A Twitter user was quick to point out that “this lends credence to the argument that eth is a security”.
Having said that, it is worth noting that Senator Cynthia Lummis had claimed that except Bitcoin, all other crypto assets are “looking more like securities” in an interview with CNBC. She had argued that other crypto-assets are not as decentralized as Bitcoin and their founders kept a large portion of the product to “themselves.”
Does the Ethereum Foundation Ether Treasury validate this argument?
Ethereum’s security status is a crucial bit in the ongoing Ripple and SEC lawsuit. Especially when the comments of William Hinman, a former SEC director, about Ethereum not being a security are taken into consideration.
Meanwhile, SEC Chairman Gary Gensler appears to have dismissed the question of Ethereum’s security status in a recent CNBC interview. Obviously, nothing can be said for sure at this point.
Now, is this reason enough to drop Ethereum from your portfolio?
While Ethereum is quickly losing market share to competitors like Solana, it still holds close to 59% share of the TVL on DeFillama.
And, with ETH 2.0 on the way, there seems to be a lot of anticipation surrounding the project. Meanwhile, we should also note that ETH is the top-selling token on Whale Stats. Which can essentially mean that top whales are also diversifying their ETH holdings into other altcoins. For example,
