The community has discovered a "god-tier" trader who specializes in selling at the top, and that is the Ethereum Foundation.
Guide to "buy the Dip, sell the Peak" with the Ethereum Foundation
The cryptocurrency market on 20/12/2024 is experiencing a "dump" storm. Bitcoin has dropped to $96,000, with an additional $1 billion liquidated.
As the market declines, everyone is sad, but the happiest must be the short traders and those who have "taken profits" at the price peak. The happiest right now is probably the Ethereum Foundation...
The Ethereum Foundation's most recent sale was on December 17, selling 100 ETH at the highest price in the past few months, which was $4,025.
And the story afterwards has become a legend...
The ETH price has dropped from the $4,000 mark all the way to the current price of $3,280, losing all the growth it had gained over the past month.
ETH price movements over the past 1 month, screenshot from CoinGecko at 04:35 PM on 20/12/2024
Not only the most recent sell order, but all of the Ethereum Foundation's sell orders in 2024 have been at the peak or near the peak.
As summarized by Lookonchain in the image below:
Since the #EthereumFoundation sold 100 $ETH on Dec 17, the price of $ETH has dropped by ~17%, marking another successful top sale.
— Lookonchain (@lookonchain) December 20, 2024
Over the past year, #EthereumFoundation has sold 4,466 $ETH($12.6M) across 32 trades, with 15 of them executed at the top(marked in red in the… pic.twitter.com/DA7nGAgbxr
The Ethereum Foundation has sold 4,466 ETH, generating $12.6 million, across 32 trades in the year. Notably, 15 of these trades were executed at the peak, with the price dropping by an average of 10% after each sale.
Source: Lookonchain
As a trader, one can only wish to have the same "timing" as the Ethereum Foundation!
In August, when the Ethereum Foundation transferred 35,000 ETH, worth over $94 million to the exchange, the community was very upset and demanded that the organization be more transparent about its activities so that investors can clearly understand the purpose of the asset transfers.
In late November, the Ethereum Foundation finally revealed a budget of $970 million, providing a detailed explanation of the expenditures over the years 2022 and 2024.
As of October 31, the Ethereum Foundation's treasury recorded a figure of $970.2 million. Of this, $788.7 million is in cryptocurrency assets, mainly ETH, accounting for 0.26% of the total supply of this token. The remaining amount, valued at $181.5 million, is allocated by the Ethereum Foundation to non-crypto assets to diversify the investment portfolio and strengthen the financial stability of the organization.
According to a recent statement by Vitalik Buterin on Reddit, they plan to spend around 15% of the remaining funds each year. This means that the Ethereum Foundation can exist indefinitely, but its size will gradually shrink (in terms of proportion to the entire ecosystem) over time.
Researcher Justin Drake estimates that the Ethereum Foundation spends $100 million annually, retains around $650 million in its main wallet, and has a sufficient budget to sustain itself for 10 years, which also depends on the price of ETH.
Compiled by Coin68
