Ethereum Foundation Transfers Spark Speculation as Vitalik Buterin Proposes EIP 7702

Ethereum Foundation Transfers Spark Speculation as Vitalik Buterin Proposes EIP 7702
Ethereum Foundation Transfers Spark Speculation as Vitalik Buterin Proposes EIP 7702

Recent developments in the Ethereum space have caught the attention of market observers and tech enthusiasts alike. The recent transfer of 1,000 ETH to a multi-signature address by the Ethereum Foundation has raised questions about its potential impact on Ethereum’s market value. 

This move is part of a larger pattern, with a total of 5,000 ETH transferred to the same address earlier this year.

A significant portion of these transferred funds—1,766 ETH—was quickly sold for 4.81 million DAI, averaging a sale price of $2,725 per ETH. These sales have historically aligned with dips in Ethereum’s price, suggesting a possible link between the foundation’s liquidation events and market fluctuations.

Image via Spot On Chain

With the multi-signature address currently holding 2,508 ETH, worth approximately $7.51 million, there is a palpable sense of caution among investors regarding Ethereum’s short-term price trajectory.

With Ethereum’s price currently struggling around the $3,000 mark, speculation suggests that continued sales by the Ethereum Foundation could push the price down further, potentially to as low as $2,400.

Vitalik Buterin Proposes Upgrade to Boost Account Abstraction

In related news, Ethereum co-founder Vitalik Buterin and his team have proposed Ethereum Improvement Proposal (EIP) 7702, aiming to enhance account abstraction on the Ethereum network.

Image via X

This proposal introduces a new transaction type that allows regular Ethereum addresses to act as smart contract wallets for the duration of a transaction, reverting to their original state upon completion.

EIP-7702 is presented as an alternative to the previously considered EIP-3074 and aims to add quantum resistance and improve compatibility with ERC-4337, a broader standard for smart contract wallets. The proposal emphasizes forward compatibility with what is referred to as “endgame account abstraction” without becoming overly prescriptive about the specifics of ERC-4337.

What Is Account Abstraction?

Account abstraction is a feature that transforms wallets into smart contracts, enabling advanced functionalities such as multi-factor authentication, social recovery systems, and the ability to transact with various tokens. 

EIP-7702 could significantly influence how account abstraction is implemented in future Ethereum network upgrades, offering a more flexible and secure framework for users. The proposed transaction type includes fields for contract code and a signature, mirroring the functionalities of EIP-3074, like batch and sponsored transactions. 

By allowing externally owned accounts to temporarily morph into contracts, they can be included in ERC-4337 bundles in a manner that aligns with the existing “EntryPoint.”

As the Ethereum community deliberates on EIP-7702, the proposal stands to redefine the landscape of account management on the Ethereum network, potentially ushering in a new era of user experience and security.

ETH Stuck in Consolidation

As of the time of writing, ETH continues to trade in a sideways pattern as accumulation continues. However, with the recent ETH dump by the Ethereum Foundation, we expect the price to weaken over the next few days. 

But unlike popular expectations, we don’t see ETH extending a descent past the $2,850 mark. As highlighted in the daily chart below, that floor has remained unbroken since the bearish trend began in mid-April, and we expect it to remain unchanged.

ETH/USD Daily Chart

That said, we expect increased accumulation around that price point to drive renewed upward momentum, retesting and possibly breaking the $3,300 ceiling once again.

ETH Statistics Data

ETH Current Price: $3,000

Market Cap: $360B

Circulating Supply: 120.1M

ETH Total Supply: 120.1M

Market Ranking: #2

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Azeez Mustapha

Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author. He is a Senior Crypto trader and market analyst at Learn2.trade

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Azeez Mustapha
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author. He is a Senior Crypto trader and market analyst at Learn2.trade