IMPORTANT POINTS:
- Vitalik Buterin has made a movement of 600 ETH (valued at more than 1 million dollars) anticipating a possible fall in the price of Ethereum.
- Ethereum is facing a critical support point between $1,600 – $1,550, and its loss could lead to a significant pullback.
- While some analysts see bearish signs, others believe it is a buying opportunity.
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The crypto universe is as unpredictable as it is fascinating. One of the most recent and notorious events involves Vitalik Buterin, co-founder of Ethereum, who has withdrawn a significant amount in the face of a possible collapse in the value of the cryptocurrency.
Recently, the respected cryptocurrency analyst, Ali Martinez, issued an alert to investors in the sector. He emphasized the critical importance of Ethereum (ETH) holding its support in the $1,600-$1,550 range. A breach of this crucial barrier could trigger a sizeable drop for Ethereum, with potential corrections between 37% and 45% sending its value plunging as low as $1,000.
According to recent data coming from blockchain intelligence platform Arkham, on Aug. 21, Buterin moved 600 ETH to Coinbase, worth more than $1 million. This operation, according to Martinez, could be a sign that Buterin intends to “withdraw before the expected collapse of ETH to USD 1,000.”
Current situation of Ethereum
By August 22, the ETH price was at USD 1,636. This digital currency has experienced a decline of more than 10% in the last week and 12% in the last month, resulting in a loss of more than 26,000 million dollars in market capitalization.
Despite this behavior, during the year, ETH has grown more than 38%, although it has not reached the 56% increase registered by Bitcoin (BTC).
On the other hand, Ethereum’s recent decline appears to be in line with a broader downtrend in the crypto market, fueled in part by expectations of interest rate hikes by the Federal Reserve.
Additionally, investor sentiment has been marked by the still unresolved legal dispute between the US SEC and Grayscale, related to Grayscale’s intention to convert its GBTC trust into a BTC-backed ETF, leaving participants’ market pending regulatory clarity.
However, not all analysts have a pessimistic view. CrediBULL Crypto, another influencer in the crypto world, said that Ethereum’s recent drop below $1,570 represents a “great buying opportunity”.
Contrary to Martinez, CrediBULL is convinced that Ethereum has already seen its lowest point and that it could be one of the first altcoins to follow Bitcoin into an uptrend, despite the bearish stance on the ETH/BTC pair in the short term.
