Ethereum co-founder Vitalik Buterin has had an unintended negative impact on the ETH price, as his ETH donations are reportedly ending up in the market.
As ZyCrypto reported earlier, Buterin refuted claims that he was profiting by selling millions of dollars worth of ETH. He stated that his ETH holdings went towards supporting crypto projects and charity organizations.
However, the projects receiving these donations are not holding on to the ETH, and instead, some coins are ending up in the market.
Buterin ETH Donations Enter the Market
According to SpotOnChain, one of the multi-signature wallets that received ETH donations from Buterin has been on a selling spree.
This wallet received 3,800 ETH, valued at nearly $10M, from Buterin in August. It has since sold nearly $2 million worth of tokens, with the latest sale happening yesterday.
These donations come amid growing concerns about the lack of enough buyers to absorb the new ETH tokens entering the market.
Spot Ethereum exchange-traded funds (ETFs) saw around $90M in outflows last week. These products have failed to capture buying interest, with only one day of positive flows in the last three weeks, as seen on SoSoValue.
Is an Ethereum Bullish Reversal on the Way?
Ethereum has gained slightly by 2.6%, trading at $2,294 at the time of writing.
ETH could be heading towards a bullish reversal because of the increase in network usage. Data from Santiment shows a gradual increase in the ETH daily active addresses since the beginning of the month.
This increase is usually a bullish indicator, as it shows that more people are interacting with the Ethereum network. This could increase ETH’s utility and drive further gains.
(Source: Santiment)
Moreover, buyers could use the ETH price dip to accumulate more tokens. The Relative Strength Index (RSI) has risen from the oversold region to 49, which shows that sellers could be losing their grip on the market.
The rising RSI line shows that bullish momentum could be building up. However, buyers are needed to drive Ethereum price gains.
(Source: TradingView)
The Moving Average Convergence Divergence (MACD) also suggests that bulls might be joining the Ethereum market. The MACD line is above the signal line, and the histogram bars have turned green.
However, for ETH to confirm the uptrend, the MACD line needs to cross over to the positive region. Buyers might be waiting for this formation to enter the market.
