Vitalik Buterin, the co-founder of Ethereum, has been sending ETH to centralized exchanges recently, raising speculation about potential sales.
While this may not necessarily be a cause for alarm, significant transfers to centralized platforms often indicate preparations for selling.
Ethereum, the world’s second-largest cryptocurrency, has been facing challenges as its price, on-chain activity, and sentiment have been showing signs of decline.
On September 25, Lookonchain reported that Vitalik Buterin deposited 400 ETH, equivalent to approximately $632,000, into Coinbase. This move raised eyebrows in the crypto community.
The overall Ethereum ecosystem is currently experiencing a period of stagnation. Ethereum’s price has remained relatively flat, and it hasn’t followed Bitcoin’s recent upward movements.
This lack of upward momentum has led analysts to believe that Ethereum may be in for some tough times ahead.
One notable observation is the absence of buying pressure from Ethereum whales, particularly those holding balances greater than 10,000 ETH. The number of these large holders has been decreasing this month, coinciding with the drop in Ethereum’s price.
Some analysts have even predicted further downside for Ethereum. “Immortal Crypto” predicted that Ethereum’s price could drop to a range between $1,300 and $1,500 over the coming weeks.
However, despite these predictions, many investors remain optimistic and see this as an opportunity to accumulate more Ethereum at lower prices.
They anticipate that Ethereum will outperform Bitcoin in the future, although not necessarily in the same way as in previous market cycles. Accumulation is seen as a slow and steady strategy that could yield substantial gains when market sentiment shifts in the next year.
On the analytical front, CryptoQuant, an on-chain analytics platform, has warned about the possibility of a short squeeze for Ethereum.
Negative funding rates on derivatives markets have also been observed. Funding rates represent periodic payments made to traders based on the difference between perpetual contract markets and spot prices.