The Ethereum (ETH) market has experienced a notable development, with a wallet linked to the Ethereum Foundation depositing a substantial 15,254 ETH (approximately $56.1 million) into the Kraken exchange. This move, revealed by on-chain data provider LooKonChain, comes amid a broader market correction that saw ETH's price drop below $3,700 before recovering.

The deposited ETH originated from both an Ethereum Foundation wallet and another wallet that received 200,000 ETH during the Ethereum Initial Coin Offering (ICO). This development has sparked attention, particularly given the recent reactivation of a nearly nine-year dormant pre-mined Ethereum address holding approximately $21.9 million.

Despite the recent price correction, Ethereum's demand has surged since the approval of spot ETH ETFs in the US on May 20. Long-term holders have been acquiring ETH at an average daily rate of 40,000 ETH, significantly higher than the pre-announcement average of 5,000 ETH. Major ETH investors have also increased their total holdings to 16 million ETH, up from 15.4 million ETH before the ETF approval and 14.9 million ETH at the start of 2024.

The Ethereum Foundation's significant deposit and the reactivation of dormant pre-mined addresses have raised speculation about potential price movements. While the market has recovered somewhat, the future price action remains uncertain. As the situation unfolds, investors and analysts will be watching closely for any further developments that may impact the ETH price.