Ethereum Co-Founder Vitalik Buterin Sells 1,400 ETH Amid Price Dip, ETH Faces Resistance at $2,800

Recent on-chain analysis reveals that ethereum co-founder Vitalik Buterin continues to divest Altcoins from his substantial eth holdings. Following a robust performance last week, the price of Ethereum has encountered selling pressure, dipping by approximately 2.5% over the past 24 hours from its resistance level of $2,750.

### Vitalik Buterin’s Continual Ethereum Sales

Data from SpotonChain indicates that Vitalik Buterin has moved close to 1,350 ETH to the cryptocurrency exchange Paxos over the past two weeks. Specifically, a wallet attributed to Buterin, labeled “0x556,” transferred 660 ETH, valued at around $1.75 million, to Paxos within the last day alone.

Earlier this month, on September 19, the same wallet received 1,350 ETH (approximately $3.23 million) from another wallet, “0xd04,” which had been funded with 70,000 ETH by Buterin back in 2022. Over the past 12 days, wallet “0x556” has transferred the entire 1,350 ETH to Paxos, leveraging Ethereum’s price rally. The average sale price was recorded at $2,600 per ETH, totaling around $3.38 million.

### Buterin’s Ethereum Alignment Initiative

These transactions coincide with Vitalik Buterin’s recent introduction of the ‘Ethereum Alignment’ concept, aimed at fortifying the Ethereum ecosystem. This new framework seeks to balance decentralization with ecosystem growth, encouraging projects that advance public goods while mitigating centralization risks. The initiative aims to bring together researchers, client teams, and developers to foster a cohesive and decentralized environment. Buterin also emphasized the importance of open-source principles, which promote transparency and security throughout the network.

### Market Response: Smart Whales Buy the Dip

While Buterin has been selling, strategic investors have been capitalizing on the price dips. Lookonchain reported that a savvy Ethereum trader acquired 10,100 ETH worth $27.15 million just eight hours ago. This trader boasts an impeccable track record, successfully executing 11 profitable ETH swing trades since August 12, generating total profits of around $2.17 billion. Additionally, the inflows into spot Ethereum ETFs resumed last week, indicating renewed institutional interest.

### Ethereum Price Faces Resistance

Despite its recent strength, Ethereum’s price has corrected by approximately 1.5% over the past 24 hours, currently trading at $2,630.78 with a market capitalization of $317 billion. Renowned crypto analyst Daan Crypto noted that “ETH has yet to achieve a higher high, a feat bitcoin managed last week.” Thus, bulls must exert additional effort to confirm a trend reversal.

For Ethereum to confirm an overall upward momentum, its price must first surpass its 200-day EMA at around $2,820. This crucial level is seen as a significant hurdle that could potentially ignite a broader altcoin rally.

### Broader Market Context

The correction in Ethereum’s price comes amid a broader market downturn in early Monday trading, as investors brace for volatility ahead of the upcoming US jobs data release. This anticipated data could have wide-reaching implications for financial markets, including the cryptocurrency sector.

### Final Thoughts

While Vitalik Buterin’s continued sale of Ethereum may exert short-term pressure on ETH prices, smart investors are seizing opportunities to buy the dip. The broader market’s reaction to upcoming economic data will be pivotal in determining the next phase of Ethereum’s price movement. As the ecosystem evolves through initiatives like Ethereum Alignment, the balance between decentralization and growth will be critical for its long-term success.