The Ethereum Foundation (EF) recently addressed investor concerns following a significant transfer of ETH that took place on August 23.

Unlike typical practices, the transfer was not announced beforehand, which fueled speculation and concern among market participants.

Arkham Intelligence noted that the foundation's selling activity historically influences the market, suggesting that this transfer could indicate a market top or upcoming price surge.

In this transaction, the foundation transferred 35,000 ETH, valued at approximately $94 million, to the Kraken exchange without prior notification to the community.

Aya Miyaguchi, Executive Director of the Ethereum Foundation, clarified that the ETH was converted to fiat to meet various organizational obligations.

Miyaguchi explained that the foundation operates on an annual budget of around $100 million, which includes grants and salaries, necessitating some payments in fiat currency.

She noted that regulatory complications had previously limited the foundation's treasury activities, affecting its ability to disclose plans in advance.

Critics within the crypto community have emphasized the need for greater transparency and accountability from the foundation, arguing that its actions could undermine ETH as a reliable investment.

This large transaction has led to bearish speculation among investors, particularly given the foundation's significant role in the Ethereum ecosystem.

In 2024 alone, the EF has offloaded significant amounts of ETH, with reports indicating that 2,516 ETH were sold for $7.4 million DAI.

As of now, Ethereum is trading at approximately $2,750, with the foundation's wallet holding 273,273 ETH worth around $752 million.

The foundation's decision to refrain from notifying the community about the transfer was primarily due to regulatory complications regarding treasury activities.