Buterin's ethereum sell-off took place against the backdrop of intense bearish pressure and a drop to new annual lows.
Ethereum co-founder Vitalik Buterin sold 2,961.5 ETH worth $6.6 million this week at an average price of $2,228. According to tradition, this event caused a misunderstanding among the members of the crypto community.
However, contrary to speculation, Buterin sold altcoins mainly for charitable purposes.
Network transactions show that the latest transactions are related to Buterin's January plans to fund open source projects, the Kanro biotech charity, and with the support of the Ethereum Foundation.
The creator of Ethereum founded Kanro in 2023 to support research to combat COVID-19 and prevent future pandemics. Perhaps the majority of the funds accounted for its financing.
At the moment, Ethereum is trading just below $2,000 with daily losses of 8%, the weekly minus has almost reached 30% (CoinGecko data). The cryptocurrency has been under bearish pressure since August last year, after reaching an all-time high of $4,955.
The RSI and MACD momentum indicators signal a strong bearish momentum. The RSI value at 22 indicates oversold conditions, while the MACD line at -242 remains below the signal line at -155. The wide gap between the lines, along with the red histogram at -87, suggests continued selling pressure and a continuation of the downtrend in the near term.