- Vitalik Buterin sold $6.6 million worth of Ethereum tokens in three days.
- Users panicked, speculating an ongoing Ethereum dump.
- Buterin’s Ethereum sales were part of his routine charitable giving.
Ethereum co-founder Vitalik Buterin sold 2,961.5 ETH worth $6.6 million at an average price of $2,228 this week. The event triggered speculations among crypto community members that he could be dumping the cryptocurrency.
Why Did Buterin Sell Ethereum?
Buterin’s Ethereum selloff occurred amid declining prices, with the flagship altcoin succumbing to bearish pressure and the price dropping to new yearly lows. However, contrary to speculations about a dump, Buterin sold the digital asset mainly for charity, according to reports.
On-chain data reveals that the identified transactions are linked to Buterin’s January 30 plans to fund open-source projects, the biotech charity Kanro, and support for the Ethereum Foundation. Contrary to market dump speculation, the transactions were purpose-driven.
Buterin founded Kanro in 2023 to support research into combating COVID-19 and preventing future pandemics. It became part of the beneficiaries of Buterin’s long-standing practice of periodically liquidating ETH for philanthropic and ecosystem-related purposes. It was a coincidence that the latest transactions occurred when Ethereum, alongside the broader crypto market, was experiencing significant weakness.
Ethereum’s Price Dynamics Amid Bearish Pressure
In the meantime, Ethereum traded for $2,094 at the time of writing, reflecting a 36% decline in less than three weeks, according to data from TradingView. The cryptocurrency has been under bearish pressure since August last year, after reaching an all-time high of $4,955. The pullback has weighed on investor sentiment as capital rotated into other asset classes.
Source: TradingView
Momentum indicators RSI and MACD both signal strong bearish momentum. The RSI at 22 indicates oversold conditions, while the MACD line at -242 remains below the signal line at -155. The wide gap between the lines, along with the red histogram at -87, suggests persistent selling pressure and a continuation of the downtrend in the near term.
Related: Ethereum Price Prediction: ETF Inflows Return At $14M But $112M Spot Outflows Keep Pressure On
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