The Ethereum Co-Founder Moves ETH to Exchanges
Vitalik Buterin, the co-founder of Ethereum, has recently been depositing large amounts of ETH onto centralized exchanges. This action suggests that preparations for selling may be underway. On September 25, it was reported that Buterin had deposited 400 ETH worth around $632,000 on Coinbase.
Ethereum Downsides Expected
Ethereum’s price, sentiment, and momentum have been stagnant recently and did not move in line with Bitcoin. There are no signs of buying pressure from Ethereum whales, as the number of ETH whales with balances greater than 10,000 has declined this month. Analysts have also predicted further downsides for Ethereum’s price.
Potential Short Squeeze and Negative Funding Rates
On-chain analytics platform CryptoQuant has warned of a potential short squeeze for Ethereum due to negative funding rates on derivatives markets. Consistent negative funding rates can trigger short liquidations and lead to a sudden price rebound.
Ethereum Price Outlook
The Ethereum price has dipped again during the Asian trading session, falling to an intraday low of $1,570. Although it has rebounded slightly, further declines are expected. October is traditionally a bearish month for stocks and crypto, so the price predictions mentioned earlier may come true in the coming weeks. However, the long-term outlook for Ethereum staking remains positive.
Hot Take: Ethereum Faces Selling Pressure as Price Stagnates
With Vitalik Buterin moving large sums of ETH to centralized exchanges and Ethereum’s price, sentiment, and on-chain activity showing signs of stagnation, it seems that selling pressure is mounting for the world’s second-largest cryptocurrency. Analysts predict further downside potential, and the negative funding rates on derivatives markets raise the possibility of a short squeeze. While short-term price declines are expected, the long-term outlook for Ethereum staking remains positive. As October traditionally brings bearish trends for both stocks and crypto, it will be interesting to see how Ethereum performs in the coming weeks.
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