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.
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:
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.
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.