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Ethereum co-founder Vitalik Buterin liquidated millions of dollars worth of eth in a rapidly declining market.
LowCounchain revealed on February 22 that Buterin had withdrawn 3,500 eth – worth around $6.95 million – from the DeFi protocol Aife. By the time of withdrawal, he had already sold 571 of these tokens for $1.13 million.
Buterin trades short amid Ethereum oversell signals
The sudden move in the asset highlights the clear contradiction between… Buterin’s long-term financial strategy and his immediate market actions.
On January 30, it was announced The 32-year-old developer what you do Ethereum Foundation It enters a period of “light austerity” to achieve its goals.
He withdrew 16,384 eth to support the company, and plans to implement the tokens strategically to achieve the long-term goal “in the next few years”.
Instead, the movements were executed with remarkable speed. Since February 2, Buterin has sold more than 7,380 eth for about $15.5 million at an average price of $2,100.
When combined with today’s transactions, The liquidated co-founder More than half of the austerity reserve allocated in less than a month.
The concentrated selling pressure from the network’s most prominent architect comes at a critical time for the asset.
ETH has fallen by 30% in the past month, It is currently trading slightly below the psychological support level of $2,000.
Institutional investors and market participants generally view large divestitures by founders during sharp market declines as a bearish indicator, regardless of management’s stated intentions.
Despite the continued selling pressure from Buterin, some intelligence companies blocked said that the asset shows technical signs of being sold below its value.
Centenary data indicates that The ratio of the market value to the 30-day realized value (mvrv) of eth It indicates severe technical undervaluation.
The mvrv index, which compares the total market capitalization of the asset with its realized value to estimate the profitability of the holders on average, currently puts eth at a deficit of 14.3%.
Santiment data indicates that Ethereum is the most discounted asset among the main cryptocurrencies in the last 30 days. In comparison, Bitcoin shows a fall in value of 6.9%, Chainlink is at 5.1%, XRP is at 4.1%, and Cardano is at 2%.
