Ethereum Foundation, Vitalik Buterin-Linked Wallets On Selling Spree, ETH Price Drop

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As a seasoned crypto investor with over a decade of experience in this volatile market, I have learned to navigate through the turbulent waters of market fluctuations with grace and caution. The recent news of Ethereum Foundation wallets and Vitalik Buterin-linked addresses being on a selling spree has left many investors concerned about the potential impact on ETH‘s price.

As a researcher studying the cryptocurrency market, I’ve noticed an interesting trend: Ethereum wallets linked to the Ethereum Foundation and associated with Vitalik Buterin have been actively selling Ethereum (ETH), creating persistent selling pressure within the market. Last week, this selling activity caused ETH’s price to plunge to $2,150, before partially recovering in response to the massive sell-off.

Ethereum Foundation and Vitalik Buterin-Linked Addresses on Selling Spree

Over the last several hours, the most recent Arkham Intelligence findings indicate significant transfers of Ethereum (ETH) from the Ethereum Foundation’s wallet. Since the launch of spot Ethereum Exchange-Traded Funds (ETFs), the Foundation has consistently been offloading ETH.

Contrarily, it appears that wallets linked to Ethereum co-founder Vitalik Buterin have been actively offloading their Ethereum. According to Spot On Chain’s data, a multi-signature wallet that received significant Ethereum transfers from Vitalik Buterin is currently disposing of its holdings.

Following receipt of around 3,800 Ethereum (ETH), valued at approximately $9.99 million, from Vitalik Buterin in two transactions on August 9 and August 30, the wallet has been gradually liquidating its holdings. However, Vitalik Buterin himself dismissed rumors of a sell-off just last week, as his ETH holdings continue to decrease.

To date, the wallet that received Ether (ETH) from Buterin has sold off 760 ETH, translating to approximately 1.835 million US Dollar Coin (USDC). This equates to an average price of about $2,414 per ETH. The most recent transaction took place only 21 hours ago, indicating ongoing liquidation of a substantial portion of the ETH holdings. This, combined with the Ethereum Foundation’s sell-off, might provide advantage to those bearish on ETH.

The multi-signature wallet that got $ETH from @VitalikButerin is on a selling streak!
Following a transfer of 3,800 ETH ($9.99 million) from Vitalik on the 9th and 30th of August, the funds have been gradually converted into USDC. Recently, 760 ETH were sold for approximately $1.835 million USDC at an average price of around $2,414 per ETH. The most recent sale took place only 21 hours prior.
— Spot On Chain (@spotonchain) September 9, 2024

On the other hand, crypto hackers are also contributing to the ETH price pressure by sending their ETH to Tornado Cash.

Ethereum Whale Liquidations Surge Amid ETH Price Drop

On September 7, a large Ethereum investor (often referred to as a “whale”) sold about 28,554 ETH, worth around $64.4 million, to cover outstanding loans on the Aave platform. This whale had amassed approximately 30,500 ETH at an average price of roughly $2,850 between December 18, 2023, and July 31, 2024. As a result of the recent Ethereum price drop, this sale resulted in a substantial loss for the whale, exceeding $17 million.

According to well-known cryptocurrency analyst Ali Martinez, Ethereum’s large investors (whales) ceased amassing more ETH in July and instead started dispersing their holdings since then.

In early July, large Ethereum investors, often referred to as “whales,” ceased acquiring more $ETH. Instead, they have either sold off or transferred their Ethereum holdings since then.
— Ali (@ali_charts) September 8, 2024

Besides the Ethereum Foundation and Vitalik Buterin, other key figures have recently been selling their ETH. Just now, Metalpha moved 10,000 ETH, equivalent to around $23 million, to Binance, adding another substantial deposit. In the last three days alone, Metalpha has transferred a total of 23,589 ETH, or approximately $54.1 million, to this exchange.

At present, Ethereum’s value is being exchanged for approximately $2,291, with a total market value of around $275 billion. If the selling pressure persists, it’s possible that Ethereum could dip below $2,000 before potentially recovering and continuing its upward momentum.

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2024-09-09 10:02