Throughout the 2023-2023 cycle, notable differences emerged in Ethereum’s performance compared to Bitcoin. While Bitcoin has shown resilience and maintained price stability, Ethereum has experienced a decline in price performance.
The gap in performance between the two is widening. #bitcoin and #Ethereum So far, during the 2023-23 cycle.
This manifests itself as a decline in ETH’s price performance and can be explained by the generally weaker capital turnover trend, especially compared to past cycles. pic.twitter.com/WV1bXsbJkV
— Glassnode (@glassnode) May 7, 2024
This divergence can be attributed to the overall weaker trend in capital turnover, especially when compared to previous cycles and all-time highs (ATH) breakthroughs.
Recent on-chain data from Spotonchain highlights an interesting development involving the Ethereum Foundation’s transfer of 1,000 ETH worth $3 million to intermediate multisign address 0xbc9.
of #Ethereum The Foundation has transferred 1,000 $ETH ($3M) sent to middle multisign 0xbc9 1 hour ago.
Remarkably, since the beginning of 2024, the Ethereum Foundation has sold 1,766 pieces $ETH For 4.81M $DAI This intermediate multi-sign 0xbc9 sells for ~$2,725 in several small batches, often before… pic.twitter.com/ry2brlCpRo
— Spotonchain (@spotonchain) May 8, 2024
This transfer is part of a larger trend, as the Ethereum Foundation has moved a total of 5,000 ETH to the same multisign address since the beginning of 2024. Notably, some of these tokens (1,766 ETH in total) were sold for 4.81 million DAI at an average price of $2,725 prior to the Ethereum price drop.
Multi-sign addresses still hold notable amounts of Ethereum ETH
Despite these sales, multisignature address 0xbc9 still holds a large amount of Ethereum, totaling 2,508 ETH (worth $7.51 million). Market observers are advised to closely monitor this address to determine whether the Ethereum Foundation intends to liquidate more ETH holdings through this multi-signature in the near future.
Currently, the value of Ethereum has fallen by 2% and the price is currently trading at $3,006. This decline highlights the challenges Ethereum faces amid broader market trends and the continued divergence in performance between Ethereum and Bitcoin.
As Ethereum continues to navigate these challenges, investors and analysts will be closely monitoring developments in the crypto market and assessing the impact on Ethereum’s price trajectory and overall market sentiment.
As uncertainty prevails, active observation and analysis will be essential for market participants seeking to understand Ethereum’s evolving role in the digital asset landscape.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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