Vitalik Buterin Wallet Dumps $1.72M ETH; What Now?

• ETH could reach the $2,900 level if it closes a daily candle above the $2,700 level.
• ETH’s Long/Short Ratio stood at 0.927, indicating bearish sentiment among traders.

In a notable move within the volatile cryptocurrency market, a wallet associated with Vitalik Buterin, Ethereum’s [ETH] co-founder, has recently liquidated a considerable amount of ETH.

Spotonchain, an on-chain analytics firm, reported that on September 29, the “0x556” wallet, linked to Buterin, moved 649 ETH worth $1.72 million to Paxos. 

Vitalik Buterin-linked wallet offloads $1.72M ETH

The analysis further highlighted that over the past 11 days, the same wallet had transferred a sizeable 1,300 ETH valued at $3.35 million at an average price of $2,581.

Moreover, this wallet had received 1,300 ETH on September 19 from another wallet funded by Vitalik Buterin in 2022. This significant ETH deposit could impact market sentiment, potentially leaning towards a bearish outlook.

Key technical levels in Ethereum analysis

According to AMBCrypto’s technical evaluation, ETH is consolidating within a narrow range after breaking the crucial resistance level of $2,590.

Should ETH’s price rally and close its daily candle above the $2,700 mark, there is a strong potential for it to ascend to the $2,900 level in the near future.

Presently, ETH trades below the 200 Exponential Moving Average (EMA) on a daily timeframe, signifying a downtrend. The 200 EMA is a vital indicator used by traders to determine the overall trend direction.

On-chain metrics reveal mixed sentiment

Beyond technical analysis, on-chain metrics present mixed sentiments.

Coinglass, another prominent on-chain analytics firm, reported ETH’s Long/Short Ratio at 0.927, reflecting bearish trader sentiment.

Source: Coinglass

Additionally, Futures Open Interest has not changed in the past 24 hours, indicating that traders are holding onto their existing positions while new traders remain hesitant to enter the market.

Read Ethereum’s [ETH] Price Prediction 2024-25

Currently, 51.89% of top traders hold short positions, whereas 48.11% are long. As of now, ETH is trading around $2,635 and has remained stable over the past 24 hours.

During this period, trading volume spiked by 22%, showing increased participation from traders and investors amid ongoing consolidation, which could be a positive indicator for ETH.

Click Here For More Trading tips and strategies.