Ethereum's price has dropped by 2.09% today, currently trading at $3,289.34, after reaching a high of $3,420.52 earlier in the day. The decline is largely attributed to the ongoing sales of Ethereum by the Interchain Foundation, which has offloaded 3,000 ETH worth approximately $10.16 million in the last hour alone. This move is part of a broader trend by the foundation, which has sold a total of 21,600 ETH since April. The sales have raised concerns among investors about the potential impact on Ethereum's price stability, especially as the market grapples with the inflationary pressures following the Dencun upgrade.
Adding to the downward pressure, Ethereum is experiencing its most prolonged inflationary period since the Dencun upgrade, with over 350,000 ETH added to its supply. This inflationary trend is reshaping Ethereum's supply dynamics and contributing to the current price volatility. The market is also reacting to broader altcoin movements, with other cryptocurrencies like Dogecoin and XRP seeing significant gains. However, Ethereum's current inflationary environment and the Interchain Foundation's sales are overshadowing these positive developments, leading to today's price decline.