Ethereum co-founder Vitalik Buterin has been transferring significant amounts of ETH to centralized exchanges, raising speculation about potential sales.
The move comes as Ethereum faces a stagnant price, decreasing on-chain activity, and muted sentiment, contributing to concerns about its future performance.
On September 25, Lookonchain reported that Buterin deposited 400 ETH, equivalent to approximately $632,000, into Coinbase.
While this transaction may not necessarily indicate imminent selling, large transfers to centralized exchanges often signal preparations for such actions.
Ethereum’s price and market indicators have remained relatively flat, failing to mirror Bitcoin’s recent movements.
Analysts have noted a lack of buying pressure from Ethereum whales, particularly those holding over 10,000 ETH, whose balances have decreased this month in conjunction with the asset’s price.
Some market participants, like “Immortal Crypto,” have predicted further downside for Ethereum, suggesting that prices could decline to the range of $1,300 to $1,500 over the next few weeks.
Despite this outlook, the investor remains optimistic, planning to accumulate more Ethereum at these levels.
While most experts anticipate Ethereum’s eventual outperformance compared to Bitcoin, they acknowledge that this shift may not happen as dramatically as in previous market cycles.
Many favor a slow and steady accumulation strategy to maximize gains when market momentum eventually shifts.
On-chain analytics platform CryptoQuant has issued a warning about a potential short squeeze in the Ethereum market.
Analysts have also observed negative funding rates in derivatives markets, which reflect periodic payments made to traders based on the difference between perpetual contract prices and spot prices.
These negative rates suggest a pessimistic outlook for Ethereum among futures traders, increasing the likelihood of a further price decline.
However, consistent negative funding rates could trigger a cascade of short liquidations, potentially leading to a sudden price rebound.