Will Vitalik Buterin quit? Future of ETH uncertain as whales dump Ethereum tokens

Ethereum creator Vitalik Buterin responded to criticism from VC firms and crypto experts on X calling for changes in the Ethereum Foundation. Buterin strongly opposes the idea of a “Degen Casino,” or a reference to gambling, rather than providing real value to enterprise blockchains and protocols. 

Ethereum hovers around a key support level on Friday, amidst a weeklong slump in crypto prices. 

Vitalik Buterin rejects idea of “Degen Casino”, won’t quit Ethereum Foundation

In response to a post on X, the Ethereum co-founder expressed his frustration and expressed his disagreement with Venture Capital (VC) firms and community members pushing for the “PvP KOL degen casino” model. 

Buterin believes a model akin to gambling only benefits a small percentage of users and though it has gained traction within the crypto community, he does not agree with it. 

Buterin is voicing his opinion at a time when the Ethereum Foundation has been slammed for Ether sales on several occasions. On-chain data intelligence platforms like Santiment and Arkham Intel log Ethereum sales and transfers made by the foundation, sparking debate among the ETH community of holders and traders regarding the impact of the selling pressure. 

Another key market mover for Ether and traders’ shifting sentiment is on-chain developments. According to IntoTheBlock’s balance-by-holdings indicator, whale sentiment shifted during the recent decline in Ethereum price. 

Ethereum token holdings of wallets worth over $10 million dropped from $379.36 billion to $312.93 billion, according to IntoTheBlock data. This represents an over 17% decline last week. Ethereum token holdings in the $1 million to $10 million range decreased from $35.38 billion to $29.51 billion in the same timeframe. 

Large wallet investors are not as bullish on Ethereum’s recovery in the short term per on-chain analysis. 

Balance by holdings in USD | Source: IntoTheBlock 

Expert says $2,300 is the next key level for Ethereum

Aurelie Barthere, Principal Research Analyst at Nansen, told FXStreet in an exclusive interview that amidst the recent liquidation surge in the crypto market, there are two key price levels. 

Barthere says:

“Here are the two ETH price levels I am looking at (the top and bottom of the pre-November trading range): 2.7K. Is it really broken? If yes, the next level is 2.3K.”

ETH/USDT daily price chart shows that Ether is likely to extend its decline by 5% over the weekend, sweeping liquidity at the lower boundary of the imbalance zone at $2,479. A deeper correction could send Ether to its September 2024 low of $2,148 and a rebound is likely. 

The two momentum indicators support the bearish thesis. The relative Strength Index (RSI) reads 31 and is sloping downward, Moving Average Convergence Divergence (MACD) indicator shows a negative underlying momentum in the Ethereum price trend. 

ETH/USDT daily price chart 

At the time of writing, Ethereum trades at $2,635.51.