Within the current challenging crypto market environment, there has been notable activity involving a wallet associated with Vitalik Buterin, a co-founder of Ethereum [ETH]. This wallet recently offloaded a substantial amount of ETH, leading to a shift in market sentiment.
On September 29th, as per data from Spotonchain, the wallet address “0x556,” linked to Buterin, transferred 649 ETH valued at $1.72 million to Paxos. Notably, over the preceding 11 days, this wallet had deposited a total of 1,300 ETH, amounting to $3.35 million at an average price of $2,581.
Significant ETH Disposal by Buterin-Linked Wallet
Further analysis by the firm revealed that the wallet in question also received 1,300 ETH on September 19th from another wallet that had been funded by Vitalik Buterin back in 2022.
This substantial movement of ETH has had the potential to influence market sentiment towards a bearish outlook.
Ethereum Technical Evaluation and Crucial Levels
In terms of technical assessment by CryptoCrypto, ETH is currently consolidating within a narrow range subsequent to breaching a critical resistance level at $2,590.
If the price of ETH experiences a surge that sees it closing the daily candle above the $2,700 mark, there is a strong likelihood that ETH could target the $2,900 level in the near future.
Presently, ETH is trading below the 200-day Exponential Moving Average (EMA) on a daily chart, indicating a downward trend in the short term.
The 200 EMA serves as an important technical tool employed by traders and investors to ascertain whether an asset is in an upward or downward trajectory.
Diverse Market Sentiment Based on On-Chain Data
Complementing the technical perspectives are insights from on-chain metrics, which reflect a mixed sentiment within the market.
Coinglass, an on-chain analytics provider, highlighted that ETH’s Long/Short Ratio stood at 0.927, signaling a prevailing bearish sentiment among traders.
Moving on, the Futures Open Interest for ETH has shown no significant change in the past day, indicating that existing traders are maintaining their positions while prospective traders exhibit hesitancy in establishing new ones.
Among the top traders, 51.89% are currently in short positions, with the remaining 48.11% holding long positions. At the time of reporting, ETH was priced around $2,635, maintaining stability over the preceding 24 hours.
During this period, trading volume surged by 22%, suggesting increased engagement from traders and investors amidst a phase of consolidation, potentially signaling favorable prospects for ETH.