Ethereum Foundation Moves $654M ETH, Market Reacts

The Ethereum Foundation today moved $654 million worth of ETH to a wallet commonly linked with sales. The transaction has sparked speculation across the crypto market about potential liquidations.

ETH’s price dropped by 32% within 24 hours, reaching as low as $3,820. Last month, the Foundation sold small amounts of ETH to support independent DeFi projects; however, none of those transactions exceeded $10 million.

Analysts: “Funds Might Go to Developers”

Some analysts believe the funds could be directed to experienced developers as compensation rather than direct market sales. This view follows a recent event: Geth senior developer Peter Szilágyi resigned from the Ethereum Foundation last week, criticizing its low-pay policies.

Szilágyi revealed that during his six-year tenure, he earned only $625,000 — far below what he considered fair for his contribution to the project. His statement caused a strong reaction within the community, reigniting debate over the Foundation’s compensation structure.

The Ethereum Foundation’s Co-Executive Director addressed the issue today, apologizing and stating that “senior developers are not compensated enough for the value they bring.” This statement fueled speculation that the large transfer might be related to personnel payments.

Market Fears of Panic Selling

The crypto community is now waiting for an official statement from the Ethereum Foundation. Investors are watching on-chain data to confirm whether the Foundation will sell these funds. Historically, similar transactions have created short-term selling pressure.

Crypto analysts highlight three main possibilities:

• The Foundation might sell ETH to cover developer salaries and research grants.

• Part of the ETH could be distributed as grants to independent projects.

• The transfer may simply be a precautionary wallet reorganization.

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