U.S. Government Wallets Boost $281M Ethereum Stockpile After Coinbase Transfer

• S. government wallets expand Ethereum reserves after Coinbase transfer.
• Ethereum holds steady above support despite slight daily market decline.
• $23.4 billion crypto stockpile shows Bitcoin dominance, Ethereum strength.

According to analytics firm Lookonchain, U.S. government wallets tied to seized funds have expanded their Ethereum holdings once again. Coinbase sent Ethereum worth $332,000 to the wallets, increasing their total balance to about $281 million.

According to the data provided by Arkham Intelligence, the U.S. government’s total crypto portfolio has reached $23.4 billion. Bitcoin comprises the largest part of this amount, $22.5 billion, and the remaining is made up of other tokens like USDT, BNB, and USDC.

These holdings are not the result of investment strategies. Instead, they were accumulated through law enforcement seizures of digital assets linked to illegal activities. The government has consolidated these assets over the years to form one of the biggest crypto reserves in the world.

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Ethereum’s Market Role and Technical Indicators

Ethereum has become a key part of the government’s official digital reserves, which were formally established in March alongside the Bitcoin reserve. The stockpile also contains other seized tokens, as a result of decades of enforcement-driven seizures.

Recent trading data highlights the strength of Ethereum within this reserve. As seen in the TradingView chart, the current price of ETH is 4284, with a current 1.17 percent daily loss. Although this decline indicates a pullback, Ethereum is still trading above the 50-day moving average at $4,140, which is an indicator of strength in market structure.

The Relative Strength Index (RSI) is 56.9, which means that the asset is neither overbought nor oversold. This evenly distributed momentum leaves room for additional price advancement in case the purchase force grows.

Ethereum has also registered impressive gains in the recent past. The token has increased by over three percent in the last 24 hours, according to CoinGecko. In the past month, ETH has been up 17 percent, which is setting it up to have one of its best third quarters ever.

Expanding Government-Controlled Digital Assets

The expanding U.S. government crypto reserves highlight the broader role of digital assets in financial enforcement. Although these holdings were not purchased with a view to speculation, their increasing market value makes them all the more significant as part of official reserves.

Ethereum has a share of the portfolio of $281 million in the total of $23.4 billion, which highlights its role in forming such a stockpile with Bitcoin. The reserves are among the largest in the hands of any single institution, even without active investment activity.

The recent transfer to Coinbase indicates another addition to the U.S. government’s Ethereum reserves. With ETH showing continued strength both technically and fundamentally, its role within the nation’s digital stockpile appears firmly established.

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