Vitalik Buterin, co-founder of Ethereum, transferred around $10 million worth of Ethereum to various crypto exchange wallets in August. This information, tracked by Lookonchain, also reveals that Buterin’s address has seen an outflow of approximately 422,000 Ethereum since 2015. The past two years alone have witnessed over 840,000 Ethereum being moved from his address.
Why Did Buterin Move Ethereum?
The significant transfers have sparked speculation that Buterin might be profiting from Ethereum’s price surge, which is currently 180% higher than its 2022 low. Despite these claims, Buterin refutes any notion of personal gain from these transactions.
Is Ethereum’s Future Bright?
On August 31, Buterin clarified that he has never sold Ethereum for profit. Instead, he emphasized that the transfers he has made since 2018 were intended to support various Ethereum projects and charitable initiatives. His statement came amidst speculation and rumors about his intentions.
Interestingly, the August transfers coincided with the Ethereum Foundation moving over 84,000 Ethereum, worth more than $207 million, to exchanges. The Foundation periodically sells Ethereum to fund ecosystem development, research, and other initiatives.
Key Takeaways
– Buterin has moved over 422,000 Ethereum since 2015, with significant transfers in the last two years.
– These transfers align with Ethereum’s price trends and the Ethereum Foundation’s funding activities.
– Buterin maintains that his transfers are aimed at project support and charitable causes, not personal profit.
The recent transfers happened 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% market drop. However, not all sales precede downturns; for instance, the sale of 100,000 Ethereum in December 2020 was followed by a 630% price increase, driven by the launch of the Beacon ecosystem and favorable US monetary policy.
Currently, Ethereum trades within the boundaries defined by the 50-week and 200-week exponential moving averages (EMA). A recent downturn from the 50-week EMA suggests a potential 15% drop by October, targeting the 200-week EMA. This level coincides with the lower trend line of Ethereum’s multi-year ascending triangle pattern, increasing the likelihood of a sharp recovery, potentially retesting the upper trend line by late 2024 or early 2025.