The Ethereum market has been buzzing over the last few days, and there’s one name that has been making major moves—Vitalik Buterin, the co-founder of Ethereum. Recent on-chain data shows that Buterin has been selling a significant portion of his ETH holdings, leading to a 2% dip in Ethereum’s price after facing resistance.
Vitalik’s ETH Sales and Market Impact
In the past 12 days, Buterin has transferred nearly 1,300 ETH, valued at approximately $3.35 million, to the crypto exchange Paxos. Most recently, Buterin’s wallet—identified as “0x556”—deposited 649 ETH (around $1.72 million) into Paxos within the last 24 hours. This move came after Ethereum rallied, but now it seems the sell-off is putting pressure on the price.
Earlier in September, another wallet associated with Buterin, “0xd04,” transferred 1,300 ETH to “0x556.” This wallet originally held 70,000 ETH—a massive sum that dates back to 2022. Over the last few days, Buterin’s “0x556” wallet offloaded the entire 1,300 ETH as Ethereum experienced a short-term recovery, with the average sale price standing at $2,581 per ETH.
This series of sales has come at a time when Ethereum was gaining momentum, but the sell-off caused the price to correct by around 2%, bringing ETH down from its resistance at $2,700.
The Introduction of “Ethereum Alignment”
Despite the recent selling activity, Buterin has been active in improving the Ethereum ecosystem. He recently introduced a new concept called “Ethereum Alignment,” which focuses on reducing centralization and promoting more balanced growth for the Ethereum network.
The Ethereum Alignment framework aims to unite various stakeholders, including researchers, client teams, and developers, to foster a more decentralized and secure ecosystem. By encouraging the adoption of open-source principles, Buterin hopes to maintain Ethereum’s integrity and reduce the risk of centralization.
This initiative comes at a critical time as Ethereum seeks to strengthen its position as the leading smart contract platform, balancing the needs of decentralization with the rapid expansion of the Ethereum ecosystem.
Smart Traders and Institutional Players Move In
While Buterin has been selling his Ethereum, smart traders and institutional investors have been taking advantage of the recent price dips. According to on-chain data, a savvy Ethereum whale recently purchased 10,083 ETH, worth around $26.8 million, just hours ago. This trader has a strong track record of profitable ETH trades, having made $2.14 billion in profits from 10 successful swing trades since August.
Additionally, institutional interest in Ethereum remains strong, as inflows into the spot Ethereum ETF resumed last week, indicating continued participation from large-scale investors.
Ethereum Faces Resistance
Ethereum’s price has struggled to break through key resistance levels in recent days. After showing some strength last week, the price has corrected by 1.34% in the last 24 hours, currently hovering around $2,626.78. According to market analysts, the next significant hurdle for Ethereum will be surpassing its 200-day Exponential Moving Average (EMA), which sits at $2,800. Breaking through this level would confirm an overall bullish trend reversal and possibly trigger further upside momentum.
Popular analyst Daan Crypto pointed out that while Bitcoin (BTC) has recently managed to set higher highs, Ethereum has yet to do the same. For Ethereum to fully regain its bullish momentum, the bulls will need to push the price above the $2,800 resistance.
What’s Next for ETH?
The broader cryptocurrency market is experiencing some turbulence, especially as we head into a week filled with economic data releases, including the highly anticipated U.S. jobs report. This may add some short-term volatility to the market, which could impact Ethereum’s price movements.
For Ethereum holders and traders, the current price action offers both caution and opportunity. On one hand, Buterin’s sell-off might indicate that the co-founder believes a price correction could be imminent. On the other hand, savvy investors are buying the dips, suggesting that ETH still holds strong long-term potential.
Conclusion
Vitalik Buterin’s recent selling activity has caused some short-term price pressure on Ethereum, but the broader market remains active, with whales and institutional investors stepping in to buy the dips. As the market awaits a confirmed price reversal, Ethereum’s price could see a resurgence if it breaks through key resistance at $2,800. In the meantime, the Ethereum community continues to focus on long-term developments, such as Buterin’s Ethereum Alignment initiative, which aims to strengthen the ecosystem for the future.
ENG WANJIKU
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