Ethereum is facing significant pressure, briefly dropping below $2,200 as large sell-offs from key wallets continue. Wallets linked to Ethereum Foundation and co-founder Vitalik Buterin have dumped considerable amounts of Ether over the past 24 hours.
Moreover, an Ether whale liquidated 28,554 ETH to settle debts on DeFi protocol Aave. These massive selloffs have impacted investor sentiment on Ethereum, with analysts taking a pessimistic stance about its future trajectory.
Ethereum Foundation and Buterin Wallets Fuel ETH Selling Pressure
Recent data shows that the Ethereum Foundation has been moving significant amounts of ETH over the past few days. Since the spot Ethereum ETF launch, the Foundation has been steadily selling its holdings, possibly introducing a supply hangover on Ether.
According to Arkham Intelligence, this selling spree has added pressure to Ethereum’s price, which fell to $2,150 before a partial recovery.
Similarly, wallets associated with Vitalik Buterin have also been actively selling ETH.
The multi-signature wallet that got $ETH from @VitalikButerin is on a selling streak!
After receiving 3,800 $ETH ($9.99M) from Vitalik on Aug 9 and 30, it’s been cashing out, selling 760 $ETH for 1.835M $USDC at ~$2,414 per ETH. The latest sale happened just 21 hours ago.… pic.twitter.com/ELcjpPSg4K
— Spot On Chain (@spotonchain) September 9, 2024
Spot On Chain revealed that a multi-signature wallet linked to Buterin sold 760 ETH after receiving 3,800 ETH from the Ethereum co-founder in August.
According to the data, the sales brought in $1.835 million USDC at an average price of $2,414 per ETH.
Despite these major sales, Buterin recently denied rumors of dumping his ETH holdings.
In an August 31 post on X, Buterin said, “I haven’t sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the Ethereum ecosystem or broader charity.”
I haven’t sold and kept the proceeds since 2018. All sales have been to support various projects that I think are valuable, either within the ethereum ecosystem or broader charity (eg. biomedical R&D)
— vitalik.eth (@VitalikButerin) August 31, 2024
Data from Arkham Intelligence shows that Buterin still holds $36.11 million worth of ETH. However, the market sentiment remains bearish as Ethereum’s price struggles to gain upward momentum.
Ethereum Whale Liquidations Add to Market Concerns
Significant whale liquidations further compounded the pressure on Ethereum’s price. Following Ethereum’s price drop on September 7, a giant whale sold 28,554 ETH worth $64.4 million tokens to cover outstanding debts on the Aave platform.
A whale capitulated after the price crash on Sept 7 and sold ~28,554 $ETH($64.4M) to pay off all debts on #Aave, losing more than $17M!
This whale accumulated ~30.5K $ETH at ~$2,850 between Dec 18, 2023 and Jul 31, 2024.https://t.co/JM1hXzY6UA pic.twitter.com/n6JRZJZHBm
— Lookonchain (@lookonchain) September 9, 2024
The whale, who bought over 30,000 ETH at an average price of $2,850, lost more than $17 million due to the liquidation.
Additionally, on August 27, Loonkonchain identified two whale’s ETH transactions involving 8,208 ETH, worth $21.59 million. The whales sold this coin to “repay debts on Aave to avoid being liquidated.”
2 whales sold 8,208 $ETH($21.59M) at $2,630 on-chain and repay debts on #Aave to avoid being liquidated.
Address:
0xbebcf4b70935f029697f39f66f4e5cea315128c3
0x1F244e040713B4139B4D98890Db0d2D7D6468de4 pic.twitter.com/6dx1LBqmxX— Lookonchain (@lookonchain) August 27, 2024
Crypto analyst Ali Martinez noted that Ethereum whales stopped buying ETH in July and have been selling it since then. This shift in whale activity signals a more cautious approach in the market, adding to the bearish outlook.
Additional Large ETH Transfers Keep Price Under Pressure
In addition to the Ethereum Foundation and Buterin-linked wallets, other significant ETH holders have been offloading assets. One notable example is Metalpha, which transferred 10,000 ETH worth $23 million to Binance.
1 hour ago, #Metalpha deposited 10,000 $ETH($23M) to #Binance again!#Metalpha has deposited a total of 23,589 $ETH($54.1M) to #Binance in the past 3 days.https://t.co/3hqVXQvHlu pic.twitter.com/UYfWi1Mn6r
— Lookonchain (@lookonchain) September 9, 2024
Over the past three days, Metalpha has deposited 23,589 ETH, adding more than $54 million to the exchange. These ongoing sell-offs from major players continue to weigh heavily on Ethereum’s price, which is currently around $2,300.
Ether has remained relatively stable over the past 24 hours, but the bearish sentiment is still visible in the weekly timeframe, with prices down 8.25%.
If the selling pressure persists, there’s a possibility that the price of Ether could drop below $2,000 before any recovery begins. The market will need stronger buying momentum to counter the ongoing selling spree and help ETH regain its upward trend.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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