Vitalik Buterin, one of the creators of the largest altcoin Ethereum (ETH), made a transfer of approximately 600 ETH worth around a million dollars to the cryptocurrency exchange Coinbase in the early hours of the day, which caused a stir in the crypto world. The ETH transfer came right after the price of the altcoin king dropped more than 10% in the market, leading analysts and market experts to believe that this could be a significant bearish signal and that Ethereum could collapse if it falls below a key support level.
Vitalik Buterin Selling ETH
The transfer, which can be confirmed by PeckShieldAlert’s notification and on-chain data, involved a wallet address linked to Vitalik Buterin, who transferred approximately 600 ETH worth a million dollars to Coinbase on August 21. The fact that Buterin or the Ethereum Foundation usually sell ETH after such transfers is what scares the Ethereum market and leads to significant price drops.
Although the exact reason behind the recent transfer is not known, there are speculations that Buterin is preparing to make new large-scale sales in addition to this one. These speculations generally increase fear in the altcoin market and put pressure on prices.
Ethereum Price Could Drop to $1,000
Experienced cryptocurrency analyst Ali Martinez warned that if the price of ETH drops below $1,550, the decline could intensify. The analyst predicts a 37-45% drop in the price of the altcoin king, targeting $1,000.
Furthermore, the weakness in Ethereum’s chart structure indicates that it is at a significant turning point. Technically, a drop below the range of $1,600 to $1,550 is expected to bring about sharp declines. Additionally, there is a significant slowdown in Ethereum’s network activity. This is closely monitored as it could be one of the triggers for the decline. Currently, the monthly average of active wallet addresses on the Ethereum network is below the annual average, and on-chain activity is extremely low. Network activity and usage are fundamental indicators of the health of a cryptocurrency project.
On the other hand, the Ethereum team is working on the Cancun update, which will introduce account abstraction, improve scalability, and enhance storage efficiency on the network, following the Shanghai update, one of the largest and most important updates performed on the network.
