‘Buy the dips and sell the gains,’ would be the advice of any seasoned trader for timing the markets. However, this time can rarely be accurate in real time.
But, interestingly, a recent observation by trader Edward Morra seems to suggest that Ethereum’s all-time high is matching the Ethereum Foundation’s sell-off.
$ ETH
Again, the ETH platform cashed out at the top (again). ETH down 40 +% since then pic.twitter.com/Bp80hEDvK0– Edward Morra (@edwardmorra_btc) January 21, 2022
The Ethereum Foundation (EF) is the non-profit organization behind Ethereum. Unlike typical nonprofits and companies, this foundation claims to fund significant development on its network while keeping the network independent of itself.
According to the address wallet shared by the trader, the Ethereum Foundation holds nearly 353,318 Ether tokens valued at over 895 million, at the time of writing.
Prior to January, the trader noted that the platform had earned 35,000 ETH on May 17 and 20,000 ETH on November 2021 at their respective peaks.
One such transfer to crypto exchange Kraken is shown below when the token was valued at $4,722.68/ETH. At press time, ETH is valued at nearly $2,500.
Source: Etherscan
What does this show?
A Twitter user was quick to point out that “this gives credence to the argument that eth is a security.”
Having said that, it is worth noting that Senator Cynthia Lummis stated that with the exception of Bitcoin, all other crypto assets “look more like securities” in an interview with CNBC. She has argued that other crypto assets are not decentralized like Bitcoin and that their founders have kept a large portion of the product to “self.”
Does the Ethereum Foundation’s Ether Treasury validate that argument?
The security status of Ethereum is an important part of the ongoing Ripple and SEC lawsuit. Especially when comments by former SEC director William Hinman about Ethereum not being a security are taken into consideration.
Meanwhile, SEC Chairman Gary Gensler seems to have stepped aside the question of the security status of Ethereum in a recent CNBC interview. Obviously, nothing can be said for sure at this point.
Now, is this reason enough to remove Ethereum from your portfolio?
While Ethereum is rapidly losing market share to competitors like Solana, it still holds nearly 59% of the TVL market share on DeFillama.
And, with ETH 2.0 being rolled out, there seems to be a lot of anticipation surrounding the project. Meanwhile, we should also note that ETH is the most sold token on Whale Stats. That could essentially mean that the top whales are also diversifying their ETH holdings into altcoins. Eg,
🐋 ETH whale “Light” just bought 642,999 $ mana ($1,845,409 USD).
Ranked 3rd on WhaleStats: https://t.co/g2Ri3NWSgL
Transaction: https://t.co/y90HnN75Na#MANA # ERC20 #DEFI #ETH #whalesstats
– WhaleStats – Top 1000 Ethereum Rich Lists (@WhaleStats) January 18, 2022