Ethereum price drops significantly due to notable sell-offs by a wallet linked to Ethereum co-founder Vitalik Buterin. This has sparked a considerable shift in the cryptocurrency market.
Recent data indicates that in the past 12 days, roughly 1300 ETH have moved from Buterin’s wallet to Paxos, causing Ethereum’s price to decrease by 2% to $2700. This movement is unfolding amidst a period of market volatility and heightened network engagement.
Buterin’s ETH Selloff: Strategic Moves or Market Influence?
On-chain data from SpotonChain reveals that a wallet believed to be associated with Vitalik Buterin transferred 1,300 ETH over the last 12 days. The most recent transaction involved 649 ETH ($1.72 million) sent to Paxos within the past 24 hours.
This activity followed a previous transaction on September 19, when the same wallet received 1,300 ETH from another Buterin-linked address, which was originally funded with 70,000 ETH in 2022.
The cumulative transfer of 1,300 ETH was executed at an average price of $2,581 per ETH, totaling approximately $3.35 million in sales. These transactions seem well-timed as Ethereum recently showed signs of recovery; however, Buterin’s sell-off appears to capitalize on local price peaks. Consequently, a bearish pressure emerged, and ETH is currently trading around $2,626, reflecting a 2.3% pullback.
Increased Buying: Whales and Institutional Activity
Despite the anxiety triggered by Buterin’s wallet activities, other major traders are taking advantage of the dip. For instance, a prominent Ethereum trader from Lookonchain snapped up over 10,000 ETH for $26.8 million, demonstrating continued interest in Ethereum at current prices.
This particular trader has a commendable track record, reportedly earning $2.14 billion in profit from similar market scenarios. Furthermore, the Ethereum Foundation has been active, recently selling 100 ETH valued at $263,000, adding to the 3,766 ETH sold throughout 2024, equating to approximately $10.46 million.
Understanding Ethereum’s Price Action and Resistance
Currently, Ethereum is in a correction phase after experiencing a rise, struggling to overcome certain resistance levels. Over the last 24 hours, ETH’s price has decreased by 1.34%, trading at $2,626.78 with a market capitalization of $316 billion.
Cryptocurrency analysts have highlighted that while Ethereum hasn’t recorded a higher high, Bitcoin did so last week, showcasing a contrasting performance between the two major cryptocurrencies.
The 200-day EMA sits around $3,100, a critical resistance level that Ethereum must overcome to re-establish a bullish trend, as per technical analysts. Once surpassed, there’s potential for ETH to retest its previous highs of $3,500.
In spite of the retracement, Ethereum’s on-chain activity has surged recently. Weekly transaction fees have reached $45 million, reflecting increased network participation, and this is the highest transaction fee total since June 2024. The growing on-chain activity indicates sustained demand for Ethereum’s network services.
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