Ethereum prices fell below $1,800 this week amid broader cryptocurrency market turbulence. The second-largest cryptocurrency has dropped 53% from its December peak of $4,107.
A large transaction initially linked to the Ethereum Foundation raised concern among investors already navigating volatile market conditions.
On-chain analytics service Lookonchain flagged the movement, posting on X: "A wallet suspected to be Ethereum Foundation deposited 30,098 ETH ($56.08M) to Maker to lower the liquidation price 5 hours ago."
The post added details on the wallet's position. "Currently, this wallet has 100,394 ETH ($182M) on Maker, and the liquidation price is $1,127.06."
Chinese crypto news outlet Wu Blockchain initially circulated the report. The transaction sparked speculation about the Foundation's potential exposure to market risks. Investors worried about implications if Ethereum's price approached the reported liquidation threshold.
Further investigation changed the narrative. Wu Blockchain issued a correction based on data from Arkham Intelligence.
"Although 0x22…1246 was flagged by Arkam as a suspected Ethereum Foundation address, on-chain data confirms otherwise," Wu Blockchain wrote on X. The wallet appears to belong to an early Ethereum investor who once interacted with Foundation wallets.
The address received a 4 million DAI transfer from the Ethereum Foundation ETH Sale in May 2022. However, its transaction patterns and funding sources trace back to a wallet identified as jonny.eth, not the Foundation itself.
The investor deposited 30,098 ETH to strengthen their position against market volatility. The wallet's liquidation price remains at $1,127, but no evidence connects this position to the Ethereum Foundation.
Ethereum traded at $1,925 at press time. This represents a partial recovery from recent lows despite ongoing market pressure.
