Vitalik Buterin sells 1,300 ETH amid Ethereum price volatility
TLDR
Ethereum transaction fees reached $45 million. A framework to reduce centralization
Ethereum, the second largest by market capitalization, is experiencing a surge in network activity as weekly transaction fees reach $45 million, the highest level since June 10, 2024.
This increase in fees reflects the participation and usage of the Ethereum network, which may indicate future price growth. However, the cryptocurrency market is presenting mixed signals, Ethereum is experiencing both positive and negative indicators.
According to on-chain data, Ethereum founder Vitalik Buterin has been partially selling his ETH holdings. In the last 12 days, Buterin transferred approximately 1,300 ETH, worth $3.35 million, to the cryptocurrency exchange Paxos.
The latest transaction was 649 ETH, worth $1.72 million, placed in the last 24 hours. These sales occurred as Ethereum prices showed strength, and Buterin capitalized on the recent price recovery.
Despite the sale of Buterin, other market participants have been using price reductions. A prominent Ethereum whale bought $26.8 million worth of 10,083 ETH, showing confidence in the asset's future potential.
This smart trader with 100% win rate in swing trading bought $ETH 10,083 $ETH($26.8M) again 8 hours ago!
Since August 12th, he has traded $ETH 10 times, making money each time, making a total profit of ~$2.14M! pic.twitter.com/BY8aXlSHir
— Lookonchain (@lookonchain) September 30, 2024
This trader has a history of successful ETH swing trades with $2.14 billion profit since August 12th.
The price of Ethereum recently faced resistance at the $2,700 level, with a 2% correction in the last 24 hours. As of the latest data, ETH is trading at approximately $2,630 with a capitalization of $316 billion.
The price action comes amid broader market volatility, with investors bracing for potential changes ahead of the release of US jobs data.
As network activity and transaction fees increase, Ethereum ETFs experience significant outflows. On September 23 alone, these investment vehicles saw $79 million in withdrawals, marking the largest outflow since July.
The difference between chain activity and institutional investment flows reflects the complex and sometimes contradictory nature of the cryptocurrency market.
In recent changes, Vitalik Buterin introduced a new “Ethereum alignment” framework aimed at improving the ecosystem.
This initiative focuses on balancing decentralization with ecological growth, reducing centralization and supporting projects that contribute to public goods.
The framework seeks to unite researchers, customer groups, and developers in building a more cohesive and decentralized Ethereum network.
Analysts are divided on Ethereum's short-term price prospects. Some technical analysts have made crash predictions, suggesting that Ethereum may reach $10,000 by the end of the year based on fractal patterns and Fibonacci analysis.
These predictions should be approached with caution as the cryptocurrency market is notoriously volatile and unpredictable.
The recent increase in network activity and transaction fees is seen as a positive indicator for the growth and adoption of Ethereum.
However, mixed signals from ETFs and price resistance at key levels suggest that the market is uncertain about Ethereum's future.
