Ethereum is experiencing more selling pressure, and Vitalik Buterin has accelerated his ETH sales in the last two days. At the time of writing, Ethereum is trading at $1,913, and the trading volume is at $18.56 billion, up 76.96%. The crypto market is experiencing weakness, with all the top assets experiencing losses.
Market players are reacting cautiously to the situation, and the price of Ethereum is experiencing significant price reactions to the on-chain movements.
Buterin’s ETH Moves Trigger Sharp Price Reactions
Lookonchain reported that Vitalik Buterin sold 1,869 ETH over the last two days, and the transaction was worth $3.67 million. During this period, the price of ETH fell from $1,988 to $1,875, and the decline was 5.7%.
Source: X
Earlier this month, Vitalik Buterin sold 6,958 ETH, and the transaction was worth $14.78 million. The asset dropped 22.7% from $2,360 to $1,825 before this sale took place. Traders have linked these moves to price reactions because of the size and timing of the transactions.
On January 30, Vitalik Buterin withdrew 16,384 ETH for project funding, and the assets were used for open-source projects for privacy, security, and fraud resistance. He wrote that Ethereum should support people who depend on it rather than those seeking quick gains.
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He said he personally handles responsibilities often assigned to the Ethereum Foundation’s special projects. His goal is to maintain Ethereum’s mission while supporting its long-term sustainability.
The funded projects include financial tools, public-sector applications, messaging platforms, and health-focused systems.
ETH Shows Signs of Undervaluation
Santiment data shows that the Ethereum 30-day Market Value to Realized Value ratio is -14.3%. This suggests that the market may undervalue Ethereum. On the other hand, the Bitcoin Market Value to Realized Value ratio for the last 30 days is -6.9%.
Santiment noted that buying during periods of realized wallet losses has been an effective strategy historically. The company further stated, dollar-cost averaging during periods of drawdowns has been a successful strategy.”
Recently, Buterin shared his views regarding digital security, artificial intelligence, and governance. According to him, security means the system performs the intended function despite complex circumstances.
However, he stated that there are risks associated with artificial intelligence but acknowledged its potential for improving governance mechanisms.
While cautioning against harmful misuse of AI, he emphasized its potential to enhance governance and promote more democratic decision-making.
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