- Ethereum Foundation and Vitalik Buterin wallets have been steadily selling ETH, contributing to market pressure and bearish sentiment.
- A whale offloaded 28,554 ETH worth $64.4M to clear Aave debts, marking a $17M loss and intensifying Ethereum’s downward trend.
- Crypto hacks have added to the pressure, as hackers continue sending large amounts of ETH to Tornado Cash, worsening market conditions.
Recently, the prices of ETH have been under a lot of pressure because the Ethereum Foundation has been increasing sales of the cryptocurrency. Large volumes of ETH have been sold from wallets associated with co-founder Vitalik Buterin and the Ethereum Foundation during the last few weeks.
Consequently, investor anxiety has increased as a result of this. The price of ETH fell to $2,150 last week before marginally rising again, but selling pressure is still there. According to Arkham Intelligence’s most recent data, the Foundation’s wallet has transferred a sizable quantity of ETH over the past few hours.
Vitalik Buterin’s Wallets Contribute to Sell-Off
Notably, wallets linked to Vitalik Buterin have also been actively selling off ETH holdings, which has increased selling pressure. Spot On Chain data reveals that a multi-signature wallet that received large transfers from Buterin has been selling its Ethereum holdings on a regular basis.
Following two transactions on August 9 and August 30, the wallet received 3,800 ETH, or almost $10 million, and has been progressively lowering its holdings ever since. Despite Buterin’s denial of any dumping rumours, the data indicates consistent withdrawals from the wallets he is associated with.
Additionally, with an average price of $2,414 per ETH, the wallet has sold 760 ETH for $1.83 million in USDC as of now. The most recent sale, which took place 21 hours ago, is a continuation of the downward trend in Ethereum reserves. When combined with Foundation sales, this continued activity may provide investors who are bearish with the upper hand.
Market Sentiment Turns Bearish Amid Whale Activity
Notably, ethereum whales have also added to the pressure on the market in the interim. A whale sold about 28,554 Ethereum worth $64.4 million on September 7. The purpose of this sale was to pay off outstanding Aave platform debts.
Additionally, over $17 million was lost by a whale, who had amassed about 30,500 ETH at an average price of $2,850 between December 2023 and July 2024. Analysts think that these whale sell-offs are escalating the downward trend for ETH and contributing to the market’s general pessimism.
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Furthermore, other significant participants in the cryptocurrency market, like Metalpha, have kept selling their ETH holdings. Metalpha sent $23 million worth of 10,000 Ethereum to Binance just an hour ago.
The company has deposited 23,589 ETH in total over the last three days, which is approximately $54.1 million. This has had an additional effect on the market.
Crypto Hacks and ETH Sent to Tornado Cash
Apart from the ongoing divestitures by significant entities, the price of ETH has also been subject to pressure from cybercriminals. The amount of ETH that a number of criminals have sent to Tornado Cash has increased the general bearishness of the market sentiment. The confluence of these occurrences has made Ethereum’s current phase challenging, and the direction of its price is still unknown.
As of the time of writing, Ethereum has a market capitalization of $275 billion and is trading at $2,326. The price may drop below $2,000 if the sell-offs continue, which would further rattle the market.
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