- Ethereum co-founder Vitalik Buterin keep on dumping his Ethereum
- Chances of ETH even crashing to double digits
- Etherem 2.0 puts its under regulators’ scrutiny
A total of 214,953 Ether worth about $26.8 million has been sent to cryptocurrency exchanges on Dec. 25.
ViewBase, blockchain analysis company reported 99,987 of these Ether has been sent to Huobi, 89,058 ETH to Kraken, and 25,908 ETH to Binance.
The 90k of Ether sent to Kraken particular originated from a single whale which received most of its Ether from Ethereum co-founder Vitalik Buterin’s wallet address. This wallet still has a balance of 350,000 Ether left.
The firm deduced that the whale is likely to be an Ethereum developer or Buterin himself.
Is Buterin dumping his Ethereum?
According to the Reddit post, Buterin previously revealed that he received a total of 630,000 ETH, 553,000 out of which has been from the genesis pre-mine and 150,000 from the developer purchase program.
In April 2016, he sold 25% of his ETH position as he divulged, “I’ve sold about a quarter of my ETH. Meh, I am not going to apologize for sound financial planning.” As per this, he sold about $1.1 million’s worth.
Just like other founders, such as Charlie Lee of Litecoin who sold all of his LTC during the last bull run, Buterin than sold another of his 30,000 ETH around the top in December 2017.
As we reported, Buterin also persuaded Ethereum Foundation to sell 70,000 of their ETH at its peak.
Now, 90k ETH has been moved by Buterin again.
Chances of crashing to double digits
Eth currently is trading at $125, down 8% on a year-to-date basis and down 92% from its all-time high of $1,570.
But such a huge amount of ETH, if dumped in the market, would put selling pressure on the second-largest cryptocurrency that could see its price sliding even more.
Currently, analysts and traders aren’t feeling very bullish about it either.
Ethereum price chart, Analyst CryptoDude says, “looks like utter shit.”
“Don’t get your hopes up until it reclaims $365 – if it does so then we can talk about 1k+ targets. Until then this is a short every bounce setup,” explained the analyst.
However, until we move back to $160, there are even chances for crashing to double digits.
— CryptoWolf (@IamCryptoWolf) December 26, 2019
However, not everyone is bearish…
You can hate Ethereum as much as you want, but it’s going to $10k during the next bull run.
— Bitcoin Macro (@BTC_Macro) December 25, 2019
Ethereum 2.0 Puts It Under Regulators’ Scrutiny
But Ethereum’s pain isn’t limited to just price. Its much-anticipated 2.0 Proof-of-Stake (PoS) transition will also put it under SEC’s scrutiny.
Vitalik Buterin suggested a faster way to migrate data to #ETH 2.0, meaning the long-awaited upgrade may come sooner than expected. The idea of making the ETH 1.0 a shard in the ETH 2.0 system is beautifully simple. The technical details will still need to be sorted out though.
— Weiss Crypto Ratings (@WeissCrypto) December 24, 2019
“significant negative implications for the Ethereum Network’s planned upgrade as well as the wider cryptocurrency market.”
Gulvosen says he isn’t trying to create FUD, but encourage those who develop digital asset-based technology to accept that laws apply to their products and developments and they need to proactively engage with regulators, so as not to “run afoul of applicable legal and regulatory frameworks.”