Vitalik Buterin, Ethereum Foundation Amp Up ETH Sell-Off Again

• Ethereum Foundation continues its selling streak after a $9.99M donation.
• Vitalik asserts the sold ETH is used for the ecosystem & broader charity.
• Wanning ETH ETF hype takes a toll on Ether’s price: is a reversal due?

The Ethereum Foundation and Vitalik Buterin, the founder of the largest Proof of Stake (PoS) blockchain, continue a selling streak of their native asset. On September 9, 2024, a Foundation-linked wallet cashed out 760 Ether (ETH) for $1.835 USDC at an approximate price of $2,414, as per the latest SpotOnChain records.

$9.99M ETH Move Raises Eyebrows

The crypto wallet in question got 3,800 Ethereum, worth $9.99 million at stamped transaction time, from Vitalik Buterin on August 9 and 30, 2024. Blockchain data shows a remaining $2.64M worth of Wrapped Ether (wETH) on Arbitrum, while Vitalik’s wallet holds a whopping $623 million worth of Ether.

The multi-signature wallet that got $ETH from @VitalikButerin is on a selling streak!

After receiving 3,800 $ETH ($9.99M) from Vitalik on Aug 9 and 30, it’s been cashing out, selling 760 $ETH for 1.835M $USDC at ~$2,414 per ETH. The latest sale happened just 21 hours ago.… pic.twitter.com/ELcjpPSg4K

— Spot On Chain (@spotonchain) September 9, 2024

The transfer was conducted at 6 AM GMT, followed by another sell-off just four hours and 20 minutes later. The blockchain intelligence platform SpotOnChain sounded the alarm about the Ethereum Foundation offloading 450 ETH to receive 1.029M of DAI. 

The Ethereum-based DAI stablecoin is regarded as one of the most resilient digital assets against severe market conditions. With a $5.1 billion market cap, DAI has a rather low daily trading volume of $68,756,707, as traders utilize DAI as a storage value in heavy market dips.

Ethereum Sell-Offs to Cool Off?

Collectively selling off nearly $700 million since 2021, the Ethereum Foundation is known to contribute donations towards blockchain development and IT projects. However, the speed trading hedge fund Jump Trading has also been selling its Ether assets. The market maker sold off 17,049 Ethereum for $46.44 million in August 2024.

On a brighter note, several factors indicate that the Ethereum selling spree is closing, as noted by the popular crypto analyst Michaël van de Poppe. The founder of MN Capital told his 725K X audience that Jump Trading’s hefty selling positions likely caused Ether’s 25% price drop since the ETH ETF launch.

Jump Trading has finalized/is close to finalizing the sell-off on $ETH.

In that aspect, we're likely going to reverse up with Ethereum.

Great weekly candle, even better if it can close above 0.045 BTC. pic.twitter.com/ciEe8c09h7

— Michaël van de Poppe (@CryptoMichNL) August 9, 2024

Poppe declared with conviction that Jump Trading “has finalized/is close to finalizing the sell-off on $ETH.” This planted optimism among crypto aficionados.

In the particular ETH/BTC trading pair, the famed trader labeled the price range of 0.05151 to 0.06047 as the “crucial area for a trend reversal.” As of press time, ETH trades well below this resistance level, at 0.41914 or $2,315, according to CoinGecko.

On the Flipside

• Vitalik Buterin recently dispeled the recent Ethereum sell-offs as ‘donations’. 
• In a post on X, Ethereum blockchain’s founder Vitalik explained that he had been HODling since 2018.
• The sell-offs fund projects “either within the Ethereum ecosystem or broader charity (e.g., biomedical R&D).”

Why This Matters

These on-chain moves have amplified concerns about Ether’s price stability and large holder sentiment.

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