Recent data reveals that wallets linked to the Ethereum Foundation and Vitalik Buterin have been actively selling Ethereum (ETH), contributing to the cryptocurrency’s ongoing price decline. The latest market movements have seen the ETH price drop to $2,150 before partially recovering, as large-scale sell-offs continue to impact investor sentiment.
Increased Selling Activity from Ethereum Foundation and Vitalik Buterin-Linked Wallets
According to recent reports from Arkham Intelligence, the Ethereum Foundation has been unloading significant amounts of ETH over the past few hours. This selling trend has been consistent since the introduction of spot Ethereum exchange-traded funds (ETFs). Similarly, wallets associated with Ethereum co-founder Vitalik Buterin have also been liquidating ETH assets. Data from Spot On Chain indicates that a multi-signature wallet, which received substantial ETH transfers from Buterin, has been actively selling its holdings.
In August, the wallet received 3,800 ETH, valued at approximately $9.99 million, from Buterin in two transactions. Since then, it has sold 760 ETH for 1.835 million USDC, averaging a price of $2,414 per ETH. Despite a decrease in Buterin’s ETH holdings, he has dismissed rumors of mass dumping.
Ethereum Whale Liquidations and Increased Selling Pressure
Compounding the situation, an Ethereum whale liquidated about 28,554 ETH, worth $64.4 million, on September 7 to settle debts on the Aave platform. The whale, which had accumulated roughly 30,500 ETH at an average price of $2,850 between December 18, 2023, and July 31, 2024, faced a significant loss of over $17 million during this liquidation. Analyst Ali Martinez noted that Ethereum whales have ceased accumulating ETH since July, shifting to a distribution phase.
Additionally, crypto hackers have contributed to the downward pressure on ETH prices by funneling their assets through Tornado Cash. Recently, Metalpha, a notable player in the crypto space, deposited 23,589 ETH worth approximately $54.1 million into Binance over the past three days, further intensifying selling activity.
As of the latest update, ETH is trading at $2,291 with a market capitalization of $275 billion. If the current selling pressure persists, the price may fall below $2,000 before any potential recovery.
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