The cryptocurrency market is trading in the red this week after Bitcoin plunged to the $70,000 level. The price dip is making industry’s bigwigs jump ship and book profits before a major crash occurs. On the heels of the downturn, Ethereum founder Vitalik Buterin dumped $6.6 million worth of ETH at an average price of $2,228.
Buterin dumped a total of 2,961.5 Ethereum from his wallet, according to the data published by Lookonchain. “Selling is still going on,” wrote the on-chain metrics firm on X. This means that the Ethereum founder is not done dumping ETH and is continuing the selling. Therefore, ETH has more chances of heading south as the bigwigs and other whales are taking profits.
“Vitalik.eth (VitalikButerin) is dumping ETH fast!” wrote Lookonchain. “Over the past 3 days, Vitalik has sold 2,961.5 ETH($6.6 million) at an average price of $2,228, and the selling is still ongoing.” The sell-off came at a time when Ethereum was losing technical support and continued through the breakdown. ETH will remain under pressure this week due to weak sentiments in the charts.
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Ethereum’s Price Under Pressure After Vitalik Buterin’s Sell-Off
Ethereum’s price is already under pressure as it dipped 34% in a month. The fall has been sharp, allowing no room for an upward trajectory. Buterin’s sell-off reinforces bearish signals, and commentators are predicting that ETH could crash to $1,800 next. The high-profile selling, combined with the market weakness, is brewing a recipe for disaster.
The sell-off also comes at a time when the Ethereum founder questioned the impact of layer-2 solutions on the industry. He explained that layer-1 blockchains are scaling up at a faster rate while L2 is severely lagging. Buterin also stressed the importance of decentralization, which is lacking in L2 networks. The statements have ruffled a lot of feathers in the broader cryptocurrency market.