Vitalik Buterin ETH Sales Raise Eyebrows – Will the Dump Cause a Crypto Crash?

In a recent post on X, crypto enthusiast Hexologist asked Ethereum co-founder Vitalik Buterin to stop selling ETH. Buterin responded by clarifying that he hasn’t sold any of his personal Ethereum holdings in the past month. However, he admitted that the Ethereum Foundation has made some sales, providing a clear explanation for these necessary actions.

As the crypto community discusses Buterin’s comments aimed at refuting the ‘ETH dumping’ allegations, Ethereum’s price has decreased by 2.7% in the last 24 hours.

Here’s what Vitalik shared and what it means for ETH’s price in both the short and long term.

What’s Behind the ETH Sales?

In his response to the ‘ETH dumping’ claims, Vitalik confirmed that he hasn’t sold any ETH from his personal stash recently. He did acknowledge that the Ethereum Foundation has conducted some sales, justifying these actions by explaining that the foundation needs to support important network projects and fund developers and researchers.

Buterin emphasized that the foundation uses ETH sales to generate funds for network improvements, such as lowering transaction fees, speeding up processing times, and enhancing security. He also mentioned that this funding helps support global Ethereum events.

ETH Price Movements: A Monthly Analysis

At the start of October, Ethereum was priced at $2,602.34 but dropped to a low of $2,349.93 on October 3rd. From October 4th to 13th, the market stayed flat, fluctuating between $2,477.11 and $2,349.93. On October 14th, new buying pressure pushed the price above its opening price from October 1st. By October 20th, the Ethereum market reached a monthly peak of $2,747. Since then, it has fallen sharply, losing about 11.15%. In the past week alone, the market has seen a 6.8% decline, with the current ETH price at $2,472.40.

Ethereum Price Prediction

A crypto trading analyst, identified as Crypto Banter on YouTube, in a recent video explaining Ethereum price targets, pointed to a ‘cup and handle’ pattern on the weekly chart of Ethereum. Highlighting the position of this pattern, he predicted that the price of the Ethereum market could reach a high of $5,129.70. 

The big question remains: When might the price reach this ambitious target? Additionally, will the confusion surrounding the ‘ETH dumping’ allegations impact the momentum of the Ethereum market?

Stay tuned to Coinpedia for all things Ethereum!