The Ethereum Foundation transferred 35,000 ETH to the exchange
ETH responded positively to the move, with more ETH leaving exchanges.
Recently, the Ethereum Foundation made the notable move of transferring a significant amount of its ETH holdings to exchanges, a move that would typically raise concerns about potential selling pressure and downward pressure on the asset price.
However, the reaction from ETH was completely unexpected and in contrast to the usual market reaction to such a transfer.
Ethereum Foundation sells part of its holdings
According to data from Spot On Chain, the Ethereum Foundation transferred 35,000 ETH to Kraken on Aug. 23. The transaction was valued at nearly $94 million and was the largest transfer made by the foundation this year. Prior to this, the foundation had sold approximately 2,516 ETH across various smaller transactions.
Given that the price of ETH has been fluctuating continuously, this big move could have an impact on the market performance of the asset. Such large movements often raise concerns about a possible sell-off, which could lead to downward pressure on the price.
However, market reaction may vary depending on several factors, including overall market sentiment.
Ethereum transaction flow shows more positive trend
The Ethereum Foundation’s recent transfer of 35,000 ETH to Kraken was certainly a significant transaction, and many are expecting a similar impact on exchange flows.
Surprisingly, however, analysis of exchange flows on August 23rd revealed that the amount of ETH leaving exchanges on that day exceeded the amount of ETH entering them.

Source: CryptoQuant
Netflow data also revealed significant outflows, with ETH recording the second-highest negative netflow this year. According to data from CryptoQuant, the netflow on August 23 was -273,596 ETH, with the largest negative netflow being in June of -317,197 ETH.
This indicates that despite the larger transfer by the Ethereum Foundation, ETH has flowed out of exchanges, which is usually a sign of investors withdrawing their holdings and putting them in cold storage or participating in staking.
Such actions can be interpreted as a bullish signal as it shows confidence in the long-term value of ETH.
Social and volume metrics increased slightly
A recent analysis of Ethereum’s social dominance on Santiment revealed a notable increase over the past 24 hours: at the time of writing, Ethereum’s social volume is over 10%, indicating that it now accounts for over 10% of all cryptocurrency-related discussions.
Additionally, trading volume also increased slightly during the same period, reaching approximately $15.8 billion, up more than $2 billion from the previous day.
This increase in trading volume, combined with its growing social dominance, signals a positive trend for Ethereum.

Source: Santiment
Needless to say, these are bullish indicators.
The growing discussion and trading activity surrounding Ethereum is a sign that market participants are actively engaging with ETH, and if this trend continues, it could signal further price growth.
ETH jumps 5% on charts
An analysis of Ethereum’s daily price movements reveals that the cryptocurrency witnessed a significant price surge in the last trading session.
Its price has risen by 5.39%, with the altcoin trading at $2,764, according to analysis by AMBCrypto. However, despite this notable rise, Ethereum’s overall bullish trend is yet to fully materialize.
This was evidenced by the moving averages and the Relative Strength Index (RSI).

Source: TradingView
Specifically, Ethereum is still trading below both the short-term and long-term moving averages (yellow and blue lines), which are currently acting as strong resistance levels and preventing further price gains.
Moreover, Ethereum’s RSI appeared to remain at the neutral line, which indicates that it is neither overbought nor oversold.
– Read Ethereum (ETH) Price Prediction 2024-25
This positioning indicates that while Ethereum is seeing near-term price gains, it is still facing significant resistance from the moving averages, and a breakout above these resistance levels would be required to confirm the start of a more sustained bullish trend.