While there is still no word from Vitalik Buterin, the Ethereum co-founder’s ETH move connects with a poor market and possible ETH ETF.
Ethereum co-founder Vitalik Buterin has moved 600 Ether (ETH), about $1 million, to a Coinbase wallet, according to data from Etherscan.
The move is interesting because, over the last few days, the value of ETH has fallen by nearly 10%. As of writing time, ETH is trading at $1,674, according to CoinMarketCap data. Also, trading volume over the last 24 hours is $4.5 billion, or 2.7 million ETH. At the moment, no one is sure why Buterin moved the ETH. There are also no details on the owner of the wallet. In addition, the Ethereum creator has not explained the move.
Buterin’s ETH transfer could likely spur some market action because of his person, and the mere fact that he moved the assets. While the crypto market is still struggling through uncertain times, a move like this, especially following a 10% plunge over the last seven days, may not augur well.
Already, crypto analyst Ali Martinez is bearish on ETH. Martinex believes that if ETH continues falling, a 37% to 45% plunge is possible if the price crashes below $1,550. This means that the world’s second-largest cryptocurrency by market cap could hit $1,000.
#Ethereum | Slipping beneath the $1,600 – $1,550 bracket for $ETH might set the stage for a significant 37% – 45% correction, targeting $1,000. pic.twitter.com/Xmo7Mgfux5
— Ali (@ali_charts) August 21, 2023
The current ETH price might be a crucial one according to several analysts who believe the $1,600 zone is critical. Any move below that could push the asset to $1,550, and then it might continue to fall in agreement with predictions from Martinez.
Vitalik Buterin Moving ETH Also Coincides with Possible ETF Approval
ETH may also benefit from a possible approval of futures ETFs (exchange-traded funds). According to recent reports, the United States Securities and Exchange Commission (SEC) could very likely approve ETFs that track ETH futures contracts. This brings the possibility of good tidings to the general ETH community, especially among people looking for this specific type of exposure to Ethereum.
While speculations suggest an approval may come by October, no one is sure which of the 16 active applications would receive regulatory greenlight. Volatility Shares had opened the floor with a filing on July 28. Following the submission, several other applicants joined. Roundhill, ProShares, VanEck, Grayscale, and Bitwise all entered the mix within 24 hours. So far, Valkyrie Investments, Direxion, and a few others have also joined the race.
According to Eric Balchunas, an analyst at Bloomberg, the likelihood of approval might be high. Balchunas says that in most cases, the SEC would have asked applicants to withdraw their filings within a few days. Although Balchunas noted the possibility of disapproval or a withdrawal request is still there, the analyst believes the fact that several approvals are still active after a few weeks is a good sign. In a tweet early this month, the analyst predicted that approvals would come sometime around August 16.
It is currently unclear whether or not the news means anything for Bitcoin ETFs. As the market waits on the SEC’s decision on BTC ETFs, the general expectation is that the Commission will start to respond in early September. The SEC may deny or approve applications, or decide to delay a decision for a while.
next
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.