- The Ethereum Foundation sold $3.03 million worth of ETH, adding pressure to its already struggling price and fueling negative sentiment.
- Ethereum ETFs have seen $550 million in outflows, highlighting a stark contrast with Bitcoin ETFs, which experienced strong inflows.
- Ethereum’s 8% price drop in recent weeks contrasts with hopes surrounding the EIP 7781 proposal, which may spur future recovery.
The Ethereum Foundation has ramped up its ETH sales, significantly impacting the cryptocurrency’s market sentiment. On October 7, the Foundation transferred 1,250 ETH, valued at $3.03 million, to Bitstamp. This sale follows the transfer of over 45,000 ETH since September by a prominent Ethereum ICO participant. These sell-offs have dimmed hopes for Ethereum’s price recovery, contributing to the ongoing downward pressure.
Bitcoin ETFs See Inflows as Ethereum Struggles
Ethereum ETFs have seen substantial outflows, with around $550 million withdrawn. In contrast, Bitcoin ETFs are experiencing significant inflows. On a single day, Bitcoin ETFs received $235 million in new investments, contributing to the $18.7 billion in total inflows since January. This growing interest in Bitcoin highlights a widening demand gap between the two leading cryptocurrencies.
ETH Price Drop Reflects Broader Market Sentiment
Ethereum’s price has dropped by approximately 8% over the past week, reflecting a broader market sentiment. The Federal Reserve’s recent decision to hold off on additional rate cuts has further dampened Ethereum’s recovery prospects. Despite a brief rally following a rate decrease, Ethereum continues to underperform compared to Bitcoin, which has been more resilient to market fluctuations.
Community Looks to EIP 7781 for Hope
Amid these challenges, Ethereum’s community remains optimistic about the long-term potential of EIP 7781. This upcoming proposal is viewed as a possible catalyst for Ethereum’s future recovery. Although Ethereum is currently down by 0.92%, trading at $2,433.55, many believe the introduction of this proposal could help the cryptocurrency regain its footing in the market.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
