Vitalik Buterin’s $10M Ethereum Transfers: What Does It Mean for ETH Bulls?
In August, Ethereum co-founder Vitalik Buterin transferred approximately $10 million worth of his Ether (ETH) holdings to wallets linked with crypto exchanges, according to data from Lookonchain. This move has sparked speculation within the crypto community.
According to Arkham Intelligence, Buterin’s Ether address has seen outflows of around 422,000 ETH (valued at $1.04 billion as of September 1, 2024) since 2015. Notably, over 840,000 ETH have been moved from this address in the past two years. These transfers have led to rumors that Buterin might be selling his Ether to take profits, especially since ETH is trading 180% higher than its cycle low of $885 in 2022. However, Buterin has denied these claims.
Buterin Denies Selling ETH for Profit
On August 31, Vitalik Buterin clarified that he has not sold his Ether holdings for profit since 2018. He explained that all his ETH transfers since then have been for supporting projects he values, whether within “the Ethereum ecosystem or broader charity.”
Interestingly, Buterin’s recent transfers coincided with the movement of 84,000 ETH worth over $207 million from the official Ethereum Foundation address to crypto exchanges. The Ethereum Foundation often sells parts of its ETH holdings to fund development, research, and other critical initiatives within the ecosystem.
Large Ether transfers can sometimes trigger short-term market reactions, as investors might perceive them as potential selling pressure. For example:
- In November 2021, the Ethereum Foundation transferred 20,000 ETH (worth approximately $95 million) to Kraken. This occurred just before Ether’s price peaked, followed by an 85% correction in its price.
- In May 2021, the Ethereum Foundation sold 350,000 ETH, which was followed by a 50% price decline in Ether markets.
Impact of Recent ETH Sales on Price
Not all Ethereum Foundation sales have led to significant market declines. For instance:
- In December 2020, the Foundation sold 100,000 ETH, which preceded a 630% price rally.
The Ether price surge was also influenced by the launch of the Beacon chain, marking Ethereum’s shift toward proof-of-stake, and the loose Federal Reserve monetary policy that boosted demand for risk assets, including cryptocurrencies.
Currently, Buterin and the Ethereum Foundation’s recent Ether sales are happening amid plans for Federal Reserve interest rate cuts and slowing outflows from spot Ethereum exchange-traded funds (ETFs).
From a technical analysis perspective, Ether is trading within the range defined by its 50-week (red) and 200-week (blue) exponential moving averages (EMA). The recent pullback from the 50-week EMA suggests a potential price drop to the 200-week EMA—around $2,000—by October, a decline of about 15% from current levels.
The 200-week EMA also aligns with the lower trendline of Ether’s multi-year ascending triangle pattern. This support confluence may increase the likelihood of a sharp rebound, potentially driving Ether to retest the triangle’s upper trendline—around $4,000—by the end of 2024 or early 2025.
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