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Ethereum co-founder Vitalik Buterin transferred approximately $10 million worth of Ethereum to crypto exchange wallets in August, according to data tracked by Lookonchain. Additionally, Arkham Intelligence data shows that Buterin’s Ethereum address has witnessed an outflow of approximately 422,000 Ethereum since 2015. Over the past two years, more than 840,000 Ethereum have been moved from the address.
Notable Allegation Against Buterin
The transfers have led to speculation that Buterin sold his assets to profit from Ethereum, especially since the cryptocurrency is trading 180% higher compared to its low of $885 in 2022. However, Buterin denies these claims.
On August 31, Buterin clarified that he never sold his Ethereum assets for profit and stated that all Ethereum transfers he made since 2018 were to support various projects within the Ethereum ecosystem or broader charitable initiatives.
Interestingly, the August transfers coincided with the official Ethereum Foundation address moving over 84,000 Ethereum worth more than $207 million to crypto exchanges. The Ethereum Foundation periodically sells some of its Ethereum holdings to fund important development, research, and other initiatives for the ecosystem.
The transfers occurred just before Ethereum’s price peaked, followed by an 85% correction. Similarly, in May 2021, the Ethereum Foundation sold 350,000 Ethereum before a 50% price drop in Ethereum markets.
Details on the Matter
Not all of the Ethereum Foundation’s sales occurred before major market corrections. For example, the sale of 100,000 Ethereum in December 2020 happened before a 630% price increase. Other factors behind the price increase included the launch of the Beacon ecosystem signaling Ethereum’s shift to proof-of-stake and the Federal Reserve’s monetary policy in the US, which increased demand for risk assets, including cryptocurrencies.
From a technical perspective, Ethereum is trading within the range defined by the 50-week (red) and 200-week (blue) exponential moving averages (EMA). The recent pullback from the 50-week EMA increases the likelihood of the price reaching the 200-week EMA by October, representing a potential 15% drop from current price levels.
The 200-week EMA also coincides with the lower trend line of Ethereum’s multi-year ascending triangle pattern. This support combination increases the likelihood of a sharp recovery, potentially leading Ethereum to retest the upper trend line of the triangle by late 2024 or early 2025.
