Key Points
- Wallets associated with the Ethereum Foundation and Vitalik Buterin have been selling large amounts of Ethereum.
- The Ethereum Foundation’s recent sale of 450 ETH via Cow Protocol has caught the market’s attention.
The Ethereum Foundation and Vitalik Buterin, co-founder of Ethereum, have been noted for their recent selling activities. A suspected Ethereum Foundation address sold 450 Ethereum, valued at $1.0364 million DAI, according to blockchain analytics platform Arkham Intelligence.
The transaction was processed through Cow Protocol and then moved to other Ethereum Foundation addresses. This is one among many transfers since the launch of spot Ethereum ETFs in June.
Is Buterin Involved in the Selling?
A multi-signature wallet that has received multiple Ethereum transfers from Buterin is reportedly selling its holdings. On August 9 and 30, this wallet received 3,800 Ethereum, valued at around $9.99 million, from Buterin in two separate transactions.
This wallet has been offloading its assets in recent weeks. When Buterin transferred Ethereum worth $8 million to a new wallet address, there was speculation about a potential donation to charity. This move was part of his history of transferring large amounts of Ethereum to various wallet addresses, often for charitable purposes.
Buterin also recently transferred 200 Ethereum, equivalent to $534,000, to an address labeled 0xEBb7…eB89. On August 19, he moved 400 Ethereum, valued at $1.05 million, to crypto mixer Railgun. The Buterin-linked wallet has so far transferred 760 Ethereum in exchange for 1.835 million USDC at an average price of $2,414 per Ethereum. The latest sale was seen less than 24 hours ago, suggesting a continuation of the selling trend.
Ethereum’s Market Position Under Pressure
The collective sell-offs from Buterin and the Ethereum Foundation could potentially cause a market downturn for Ethereum. These outflows are already contributing to strong selling pressure, causing the price of Ethereum to drop further.
Recently, Ethereum dipped to $2,150 before partially recovering. Currently, it’s trading at $2,327.65, reflecting a 1.18% increase in the past 24 hours. The current price level of Ethereum indicates a lack of investor enthusiasm for the coin.
As cryptocurrency struggles to register any revenue boost, analysts are expressing doubts about its future performance. This is understandable, given the bearish sentiment towards Ethereum amongst investors. However, some market observers and analysts believe the coin has reached a potential bottom, which could trigger a major bull rally soon.
