Vitalik Buterin has recently sold massive amounts of ETH, sparking speculation about his intentions.
The Ethereum founder's previous transfers have often coincided with market price drops.
Meanwhile, Buterin has a history of donating significant amounts of crypto to various causes.
Ethereum is currently experiencing low volatility and trading volume, and analysts believe it may have hit a bottom.
Bluntz says the whales appear to be selling Bitcoin and buying Ethereum, indicating a bullish trend.
Vitalik Buterin, the co-founder of Ethereum, has sparked massive speculation in the market this week after moving 800 ETH (worth around $2.1 million) to a multi-sig wallet.
LookOnChain was the first to draw attention to this transfer, and eyebrows have been raised.
The main issue wasn’t even the transfer itself—why did Buterin have to partially convert 190 ETH into 477,000 USDC—a stablecoin mid-transfer?
Is Buterin preparing for a larger selloff?
This is not the first time that Buterin's actions have caught the market's attention.
One of the biggest examples was in May 2021, when Buterin donated over $1 billion worth of various cryptos (including about 50% of Shiba Inu’s total supply) to India's COVID-19 Relief Fund.
This transfer caused the price of ETH to plummet, leading many to believe that Buterin sell-offs typically result in broader market impacts.
The Ethereum co-founder recently donated around $441 million worth of Akita Inu tokens to support crypto security initiatives.
Buterin dumping on us.
This happened right after he transferred a prior 400 ETH (worth approximately $1.05 million) to a crypto mixer called “Railgun”.
Three years ago, Buterin also mentioned on Reddit that he held around 700,000 ETH, which he got from the cryptocurrency's premise phase.
However, according to data from Arkham from recent times, Buterin now holds around 240,000 ETH, which is a lot more than half of the original figure.
“Looks like his goal with eth is to make sure to spend it all in his life span” one commenter mentioned.
Interestingly, Buterin remains adamant that he holds “90% of his net worth” in ETH, according to a 27 August tweet.
Market analysts continue to watch Ethereum for signs of life. According to data from CoinMarketCap, the cryptocurrency has been down by around 9% over the last week, along with relatively low volatility and trading volume in its short-term timeframes.
Ethereum’s price action
In the charts, the cryptocurrency continues to print low-volatility candlesticks, suggesting that its bulls and bears might be evenly matched.
Ethereum’s price performance
The RSI on the cryptocurrency's daily chart shows that the bears are currently stronger, as shown above, but according to analyst Bluntz in a recent tweet, Ethereum might have hit its bottom.
The analyst says that a 3-day divergence is brewing on the ETH/BTC chart, and the whales appear to be selling Bitcoin and going for Ethereum.
Because of this, if Ethereum hasn't hit its bottom yet, it must be close.
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