Ethereum, the second-largest cryptocurrency by market capitalization, has seen a recent price dip, with significant movements by key players in the Ethereum ecosystem driving market uncertainty. Notably, the sell-offs by Ethereum co-founder Vitalik Buterin and the Ethereum Foundation have triggered bearish sentiments, raising questions about the short-term outlook for the cryptocurrency.
Buterin’s Sell-Off Sparks Concern
On-chain data reveals that Vitalik Buterin sold 1,300 ETH over the past 12 days, leading to a 2% price drop for Ethereum. These transactions, which sent ETH to Paxos, occurred during a period of heightened market volatility. The sell-off, which took place while Ethereum was attempting to break through key resistance levels, caused the price to slip to $2,700.
The timing of Buterin’s sales has fueled speculation about Ethereum’s short-term price movement. Some analysts believe that Buterin’s decision to sell at what seemed to be local highs indicates concerns about further price appreciation. While Ethereum has made notable progress in recent months, breaking key resistance levels has proven to be a challenge, with the price struggling to move past $2,800.
Whale Buyers Step In
Despite the bearish pressure caused by Buterin’s sell-off, some traders have taken advantage of the dip. A notable whale trader purchased over 10,000 ETH, worth approximately $26.8 million. This investor, known for their profitable Ethereum trades, has reportedly made billions from previous buy-the-dip strategies, signaling continued confidence in the cryptocurrency’s long-term potential.
The Ethereum Foundation also contributed to market activity, selling 100 ETH just 30 minutes before a report surfaced. This is part of the Foundation’s broader selling activity in 2024, totaling 3,766 ETH, or roughly $10.46 million. These institutional sell-offs have heightened caution in the market, even as network activity on Ethereum continues to rise.
Ethereum’s Struggle to Break Key Resistance
While the recent sell-offs have contributed to a bearish sentiment, Ethereum is also facing technical challenges. The price has dropped to around $2,626, marking a 1.34% decrease in the past 24 hours. Analysts highlight that Ethereum needs to surpass the 200-day EMA, currently around $3,100, to regain bullish momentum. If it can break through this level, ETH could potentially retest the $3,500 mark.
Despite the price correction, Ethereum’s on-chain activity remains robust, with weekly transaction fees reaching $45 million, the highest since June 2024. This suggests that demand for Ethereum’s network services remains strong, offering a potential bright spot for the future.
While sell-offs by major players like Buterin and the Ethereum Foundation have driven short-term price drops, whale buyers and increasing network activity suggest that Ethereum’s long-term outlook remains positive, though the road to recovery will likely depend on breaking key resistance levels.
