Ethereum Foundation's decision to sell Ether may be explained

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Ethereum Foundation's decision to sell Ether may be explained

After the non-profit organization Ethereum Foundation deposited millions in ETH, the price of Ether decreased, and even though it hasn't offered any explanation for its recent actions, it appears to have a very good reason for doing so.

While the broader crypto market was already trading in the sea of red, traders particularly responded to the recent move by the Ethereum Foundation with Ether, which extended its losses to 1.8% at $1,614.

The Ethereum Foundation occasionally sells crypto assets to cover costs, and it usually leads to a momentary sell-off event in the market.

Ethereum Foundation-linked wallet 0x9eE457023bB3De16D51A003a247BaEaD7fce313D was traded on Monday for more than 1,700 ETH. It was worth $2.7 million, according to the prevailing market price based on the data from blockchain firm Arkham Intelligence.

As of Monday morning, the wallet labeled on blockchain tracker Etherscan had $3.687 million worth of tokens. ARB included 240.68 ETH, 3.238 million USDC, 49,700 DAI and 10,000 ARB.

While the non-profit organisation has been mum on the reason behind its latest move, data from token flow - based data platform EigenPhi revealed that when it sold 1,700 ETH via Uniswap v3, it came under a sandwich attack by MEV Bot.

The said attack cost the Ethereum Foundation $9,101 and gave MEV Bot a profit of $4,060, as pointed out by Chinese crypto journalist Collin Wu.

It is worth noting that this is not the first large-scale ETH transaction by the Ethereum Foundation to align with the fluctuation in Ethereum price.

In May 2021, the foundation transferred more than 35,000 ETH, which triggered a massive nosedive in the value of ETH from over $3,500 to just around $1,825.

The foundation also transferred 20,000 ETH in November of the same year, when Ether was at its peak, trading at around $4,700.

The Ethereum Foundation moved 15,000 ETH, pulling the price of ETH, which was at its local peak at the time.

The world's second-largest crypto asset by market capitalization, Ether, was down at $1.590.73 as of 4:36 a.m., a decrease from its previous high of $1,590.73. ET on Tuesday, with a 24 hour trading volume up by 1107.83% to $7,198,930,817, reflecting a decrease of 1.58% in the last 24 hours and a loss of 4.34% over the past seven days.

The circulating supply of ETH stands at 120,250,55 ETH, with its value down by 1.60% at a $191,264,820,475 market cap, according to data from CoinMarketCap.