Ethereum (ETH) price ran out of momentum slightly above $1,800 dampening investor optimism for a run-up above $2,000. While declines have been minor below the immediate support/resistance at $1,800, bulls lack the momentum to resume the uptrend.
Meanwhile, a report of the co-founder of Ethereum, Vitalik Buterin, transferring 100 ETH to Coinbase is raising concerns over the future of the ecosystem, with some expecting headwinds. Chinese reporter was the first to mention the transaction worth around $181,000 at the time of transfer.
The Vitalik holding address vitalik.eth transferred 100 ETH ($181,000) to Coinbase today. Previously, Vitalik stated that he had not sold ETH for personal benefit since 2018, mainly donating it to a charity or non-profit organization or other projects.https://t.co/jmuDIPOOTM
— Wu Blockchain (@WuBlockchain) November 1, 2023
Why Is Buterin Moving Ethereum
This is not the first time the co-founder has transferred his Ethereum holdings. He recently addressed similar concerns, saying that he had not sold any Ether since 2018 at least not for business or personal gain.
Buterin mainly donates his ETH holdings to charity, non-profit organizations, and other projects.
However, the community accepted Buterin’s statement with a grain of salt, with some like @JasonWavesRider (a user on X (formerly Twitter) raising more concerns that something bigger could be coming.
Interesting to see Vitalik moving ETH, especially since he said he hadn’t sold ETH for personal benefit since 2018. Wonder what he’s up to. #ethereum #vitalikbuterin
— Maket Waves Rider (@JasonWavesRider) November 1, 2023
He may be moving ETH due to personal reasons or it could be that he is financing another project. Either way, the real reason behind these frequent transfers remains unknown.
Where Is Ethereum Heading Amid Uncertainty
The uncertainty around the lack of transparency regarding transactions made by Buterin is not helping the token which must regain the ground above $1,800 to ensure investor confidence in the uptrend is not lost.
Based on the Relative Strength Index (RSI) retreating from the overbought region, the price of Ethereum is likely to slide significantly below $1,800. Support at $1,740 may provide the necessary liquidity to create the momentum for a larger breakout toward $2,000.
As Ethereum rebounds above $1,800 traders will start to identify critical levels such as the descending trendline that stopped the bullish party in October. A successful breakout is needed at this price point to affirm the positive outlook as well as the uptrend.
The next key level would be the seller congestion at $1,900 which will either pave the way for the climb to $2,000 or delay the breakout for a period of consolidation, not to mention, the possibility of a correction back to $1,800 or a lower support area like $1,740.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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