Vitalik Buterin Intensifies ETH Liquidation as Market Weakness Persists
Ethereum's co-founder, Vitalik Buterin, has sold a significant amount of ETH, coinciding with a continued decrease in the cryptocurrency's price.
Vitalik Buterin has ramped up his ETH sales recently. On-chain data indicates that the Ethereum co-founder disposed of 1,869 ETH, valued at around $3.67 million, in the last couple of days. During this timeframe, Ethereum’s token fell from roughly $1,980 to $1,850, marking a decline of over 5%.
ETH Sales
The pattern of these transactions echoes a previous instance where Buterin sold 6,958 ETH, worth about $14.78 million, which coincided with a more substantial price drop of 22%, from $2,360 to $1,825, based on an update shared by blockchain analytics firm Lookonchain.
The latest sales took place just after Lookonchain pointed out Buterin’s withdrawal of 3,500 ETH from Aave. The price of ETH has faced pressure as the overall market continues to decline since it hit highs above $4,900 in August last year.
Data shows that Buterin’s sales have surpassed 8,000 ETH since February 2. Earlier this year, he announced intentions to withdraw and liquidate 16,384 ETH, mentioning that these funds would be allocated towards ecosystem development, open-source software projects, and infrastructure support, as the Ethereum Foundation enters what he described as a period of ‘mild austerity.’
Despite these recent sales, on-chain insights from Arkham Intelligence reveal that Buterin retains over 224,000 ETH, estimated to be worth about $429 million at current market valuations. An earlier Arkham assessment of Buterin’s wallet activity highlighted that his wealth remains closely linked to the performance of ETH’s price, with minimal diversification into other investments.
Conversely, Erik Voorhees, the founder of ShapeShift, is engaging in the opposite activity by buying back ETH after having sold a substantial quantity last year.
Fragile Market Condition
The crypto market account Whale Factor has signaled that Ether is nearing a ‘massive crossroads,’ citing a recent drop below a long-held trend line, which resulted in a significant 41% sell-off that was deemed severe and damaging for market structure. They noted that ETH is currently trading near a crucial support area around $1,750. If this support fails, it could lead to accelerated losses and further decline akin to earlier market conditions this year. ETH also faces low liquidity, resulting in fewer buyers available to mitigate selling pressure, potentially amplifying price fluctuations.
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