Vitalik Buterin’s Ether Sales Add Pressure to Weak Market

Ethereum co-founder Vitalik Buterin has sold 1,869 ether, valued at approximately $3.67 million, over the past two days. This move has intensified the bearish sentiment in an already struggling market. The sales were revealed through blockchain data from Lookonchain, which showed Buterin withdrawing 3,500 ether from Aave before liquidating part of it.

Ether’s price has dropped nearly 3% in the last 48 hours, reaching a 20-day low of $1,844. The current downtrend follows a peak of over $4,900 experienced in August last year. Buterin’s recent sales are part of a larger plan announced on January 30, when he disclosed intentions to withdraw and sell 16,384 ether. The aim of these sales is to fund ecosystem development and open-source software projects as the Ethereum Foundation enters a phase of “mild austerity.”

Despite trimming his holdings, Buterin still retains over 224,000 ether, valued at $429 million, according to Arkham Intelligence. As Buterin offloads his ether, other major figures in the crypto space, such as ShapeShift Founder Erik Voorhees and a whale linked to Matrixport, are acquiring the supply.

Analyst Insight: Buterin’s sales reflect a broader trend of strategic asset reallocation in the crypto world, similar to Bitdeer’s recent bitcoin liquidation for AI ventures.

The ongoing sales raise questions about the impact on ether’s short-term price trajectory and whether other influential holders will follow Buterin’s lead.

Sources: CoinDesk