Is the Ethereum price fall coming as Vitalik sends ETH to Coinbase?
On-chain data shows Ethereum founder Vitalik Buterin sent 600 ETH to Coinbase Exchange on 21 Aug 2023. As of this writing, the amount is roughly worth $1 million.
The Ethereum founder initiated the transfer from his wallet, Vitalik. eth, which was created in 2016.
Arkham’s Intelligence dashboard data confirmed the wallet, currently valued at $6.5 million during press time, belongs to Buterin. According to Arkham, the wallet contains $58,000 worth of Wrapped Ethereum (WETH) and $84,000 worth of USD Coin.Â
While this is not the first time Buterin has made a substantial transfer, the motive behind the transaction remains unclear. However, Glassnode _an on-chain data aggregator, has historically proven exchange inflows like this one often translate to market sell-offs.
Earlier in 2023, the Ethereum founder made a 200 ETH deposit to Kraken and dumped a few of his altcoins in exchange for 439 ETH.
Ali On-chian data experts fear Votalik may be cashing ETH as he anticipates an ETH dip to $1000.
On-chain data from @ArkhamIntel shows @VitalikButerin sent 600 $ETH worth over $1 million to @coinbase!
It looks like he is cashing out before the anticipated #ETH dip to $1,000. https://t.co/B5DfaIyB4z pic.twitter.com/qcw99179NB
— Ali (@ali_charts) August 21, 2023
Data Shows ETH Whales are Dumping
Meanwhile, the news of this transfer comes amidst rising dumping activity of ETH by whale wallets holding 10,000 – 100,000 coins. On-chain data suggests these whale wallets have depleted approximately 1.12 million coins between July and August. See below:Â
Looking at Ethereum’s current price struggle with the $1,700 price level, Buterin’s transfer has the potential to exert a bearish sell-off on ETH.Â
A downside developed on the 4-hour Ethereum chart, with the price extending a correction toward a 6-month low at the $1550 level. The chart below indicates the breakout of ETH/USD from $1,500 to levels above $2,000 between March and August.
Markets analysis AliCharts hinted at a potential downward correction targeting the $1,000 psychological support. In his tweet, Ali shared the possibility of a 37% to 45% price correction when Ethereum broke below $1,600 – $1,550.
As of this writing, Ethereum has recovered slightly from the 6-month low and is exchanging hands at $1675 per piece.Â
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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