Ethereum: The wallet associated with Vitalik Buterin generates bearish sentiment
A wallet associated with Vitalik Buterin deposited 649 Ethereum worth $1.72 million into Paxos.
If the daily candle closes above the $2700 level, Ethereum could reach the $2900 level.
- The ETH long/short ratio stood at 0.927, indicating bearish sentiment among traders.
In the bustling cryptocurrency market, a wallet associated with Vitalik Buterin, one of the founders of Ethereum [ETH], drained a significant amount of Ethereum. According to on-chain analytics firm Spotonchain, on September 29, wallet address “0x556” linked to Buterin deposited 649 ETH worth $1.72 million into Paxos.
The wallet associated with Buterin drained $1.72 million worth of Ethereum.
The firm also noted that in the past 11 days, this notable wallet deposited 1300 ETH valued at $3.35 million at an average price of $2581.
Furthermore, the company added that this wallet received 1300 ETH on September 19 from another wallet funded by Vitalik Buterin in 2022.
This massive ETH deposit has the potential to shift market sentiment toward bearish.
Technical Analysis of Ethereum and Key Levels
According to AMBCrypto’s technical analysis, Ethereum is consolidating in a range after breaking the $2590 resistance level.
If the asset’s price rises and closes its daily candle above the $2700 level, there is a strong likelihood that Ethereum could reach the $2900 level in the coming days.
Source: TradingView
Currently, ETH is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a bearish trend.
The 200 EMA is a technical indicator that traders and investors use to determine whether an asset is in a bullish or bearish trend.
Mixed Sentiment with On-Chain Metrics
In addition to technical analysis, on-chain metrics show mixed sentiment.
According to on-chain analytics firm Coinglass, the ETH long/short ratio stood at 0.927, indicating bearish sentiment among traders.
Source: Coinglass
Additionally, its open interest in futures has remained unchanged over the past 24 hours, indicating that traders continue to hold their positions while new traders are hesitant to establish new ones.
51.89% of top traders are holding short positions, while 48.11% have long positions. At the time of publication, ETH was trading near $2635, remaining unchanged over the past 24 hours.
During the same period, its trading volume increased by 22%, reflecting greater participation from traders and investors amidst the ongoing consolidation, which could potentially be a positive signal for Ethereum.
