A wallet associated with Ethereum co-founder Vitalik Buterin sold 190 ETH, equivalent to $441,971. This transaction, in addition to the others recently undertaken by Buterin, fueled speculations regarding their influence on Ethereum.
The sale occurs when Ethereum whales have also been dumping large amounts of ETH, raising concerns about the cryptocurrency’s price action.
Continued Wallet Activity Raises Eyebrows
Blockchain analysis reveals that Buterin’s wallet was active since August 30, and it has been receiving and selling a significant amount of Ethereum. In the past few weeks, it has received around 3,800 ETH, which is equivalent to around $9.8 million and sold about 950 ETH for $2.28 million.
This latest sale of 190 ETH can also be seen in the context of other large transactions, which has only increased the curiosity regarding Buterin’s approach to the market. Buterin exchanged 190 ETH for 477,000 USDC, a stablecoin linked to the US dollar.
This conversion has fueled speculations as to the causes of the swaps and whether this is a new strategy that Buterin is employing in managing his cryptocurrency investments. This shift has attracted the attention of market participants interested in understanding the effects these actions can have on the price of ETH.
Whale Movements and Market Pressure
Buterin’s transactions occur during significant whale activity on the Ethereum network. Within the last day alone, whales have dumped more than 64,000 ETH, approximately $151 million.
These large sell-offs are likely to add more selling pressure to the market, which can result in lower Ethereum prices. One of the whales sent more than 40,000 ETH to Binance, while the other sent more than 14,500 ETH to Coinbase.
In this case, such major transfers are a sign of expected sales, which may lead to temporary changes in the market. Thus, as Ethereum approaches crucial resistance at $2,400, such sell-offs may exacerbate market volatility and prompt fears of further price drops.
Ethereum’s Technical and Market Outlook
At the time of writing, Ethereum was around $2,287, still failing to surpass the $2,400 mark. If the price exceeds this barrier, it may target the $2,465 and $2,550 levels, indicating a possible bull run. However, declining to do so may lead to a reversal, with critical support levels at $2,335 and $2,300.
ETH/USD price chart (source: TradingView)
Some recent technical indicators point to the upside, while others point to the downside. For instance, the MACD is still in the bearish zone, but selling pressure is easing slightly.
On the other hand, the Chaikin Money Flow (CMF) has been oscillating around the zero level, suggesting no clear dominance of either buying or selling pressure. The price charts also depict a probable bullish formation in the form of a ‘Double Bottom’ around the $2,000 mark.
If Ethereum’s price moves above the $2,500 level, it will signal a potential change in the trend toward the upside. However, if the price breaks the lower support levels, the price may continue to decline and test the $1,750 support.
