Ethereum Foundation locks $46 mln in ETH – Here’s why the market isn’t reacting
Is this a long term bet or just a response to the dynamic market conditions as uncertainty increases?
In a recent turn of events, and as reported by Akrham, the Ethereum Foundation has made its biggest Ethereum [ETH] move yet. As per on-chain data, the former has staked around 15,000 ETH, which is around $46.2 million, into the network.
Now, while such moves often have a direct impact on the price of the asset being staked. In this case, things are different.
Ethereum Foundation stakes ETH – What for?
The Ethereum Foundation has staked this huge amount of ETH for generating on-chain yield. This means that this move won’t have a direct impact on ETH’s price. Instead, it would help in reducing short-term selling pressure from ETH.
For those unaware, this move marks a major step ahead in the Foundation’s goal to stake up to 70,000 ETH. This move coincided with the largest altcoin trading at $2059 at press time, showing a 2.8% increase in the past 24 hours.
Additionally, the RSI sitting near the neutral zone and price volatility, seeing a drop in momentum, suggests that ETH might be in an equilibrium phase with no strong pull from buyers or sellers.
However, with the Crypto Fear and Greed Index still in the “Extreme Fear” zone, things are still uncertain.
Ethereum is not alone
Needless to say, Ethehem is not the only one riding this boat. Bitcoin, despite its volatile price action wherein it just closed near the $75,000 mark and is now back to $67,000, has its staking game unhindered.
Simply put, long-term holders are not getting affected by short-term noise and are focused on getting maximum return even in uncertain times by using staking as their game plan.
Final Summary
- The Ethereum Foundation joins the race to become a leader in the Ethereum staking ecosystem.
- Muted RSI and “Extreme Fear” conditions hint at cautious investor sentiment as institutions play the long game.
