The creator and co-founder of Ethereum, Vitalik Buterin reportedly transferred 600 ETH tokens to Coinbase on Monday. The value of transferred ETH mounts up to over $1 million. This move from Buterin came shortly after Ethereum (ETH) suffered from a huge sell-off in the market, causing a 10% sharp decrease in its trading price within the last week.
Ethereum is now trading around a crucial support level and analysts fear that it will be in for a massive blow if the support does not hold. In such a scenario, the move from Buterin has caused a lot of fuss in the industry. People are speculating that the Ethereum creator is selling off his ETH holdings. This cannot be a good sign for the token as it can ignite panic selling among token holders.
As per some reports, Buterin repaid 250,000 RAI tokens and withdrew $1.6M worth of ETH. However, there was still no particular reason why he transferred a large number of tokens to a centralized exchange. The news led to a degradation of ETH price. The coin is currently trading at $1,675 with a market cap of $201B.
Tough Days Ahead for Ethereum (ETH)?
According to some analysts, the leading altcoin has to hold a position above $1,600. A fall below this mark can induce an extended bearish spell, wreaking havoc for the token and pulling it back to a minimum of $1,000. The risk of ETH at $1,000 might be low but they are still there.
On the other hand, the monthly average of active Ethereum users has fallen below the annual average. It indicates that there is limited on-chain activity and the token’s community is lacking confidence. Mostly, this is observed when the health and utilization of a crypto network is shaky.
Moreover, the global crypto market is going through a troubling phase. The recent market meltdown caused liquidations of more than $1 billion. Thus, many investors and traders are preferring to stay on the sidelines for a while.
The Ether team is currently working on the Cancun upgrade which will bring account abstraction, increase scaling and improve the storage effectiveness of the network. The update holds immense importance for the token after the Shanghai upgrade.