The cryptocurrency market has been experiencing a slump in the last 24 hours, with both Bitcoin (BTC) and Ethereum (ETH) facing price declines. In this climate of uncertainty, on-chain analytics firm Spot On Chain reported on X (formerly Twitter) that Ethereum co-founder Vitalik Buterin transferred a significant amount of ETH to cryptocurrency exchange Kraken.
This deposit, valued at roughly $530,000 for 200 ETH, marks the first time in 2024 that Buterin has publicly deposited to any centralized exchange (CEX). Given the influence prominent figures like Buterin hold within the crypto industry, such movements can potentially impact market sentiment.
However, the relatively small amount transferred leaves the purpose unclear. Whether it was intended for donation, staking, or even selling remains unknown. It’s worth noting that Buterin recently moved a much larger sum – over 3,200 ETH valued at $8.32 million – to two newly created multisig wallets, which could potentially be for charitable purposes.
Ethereum’s Price Performance and Liquidation Risk
At the time of writing, ETH is trading around $2,620, reflecting a price drop exceeding 4% in the past day. This decline is accompanied by a 4% decrease in Open Interest, suggesting waning investor and trader interest.
Coinglass, another on-chain analytics firm, indicates critical liquidation levels for ETH. If the bearish sentiment persists and the price falls below $2,596, nearly $163 million worth of short positions could be liquidated. Conversely, a price surge to $2,686 would trigger the liquidation of approximately $240 million in long positions.
Also Read: Ethereum Inflation Returns – 75,301 ETH Added Since January
Bearish Sentiment and Technical Outlook
The overall market situation paints a bearish picture for ETH. Veteran trader Peter Brandt recently shared a technical analysis on X, suggesting a bearish outlook for ETH on both higher and intraday timeframes. In his post, Brandt hinted at a potential trade with a target price of $1,651 and a stop-loss set at $2,961. This analysis has garnered significant attention within the crypto community, further amplifying the prevailing bearish sentiment.
While Vitalik Buterin’s transfer to Kraken has sparked speculation, the limited amount and unclear purpose leave the market uncertain. Ethereum’s price decline and waning investor interest further emphasize the bearish outlook. Technical analysis from prominent figures like Peter Brandt adds weight to this sentiment. It remains to be seen how ETH will navigate these challenges and whether the market can recover from this downturn.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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