Ethereum co-founder Vitalik Buterin is still selling parts of his ETH holdings. According to data from SpotonChain, the developer has transferred over 1,300 ETH to Paxos in the last 12 days.

The analytical platform also identified a deposit of 649 ETH to Paxos from a wallet belonging to Buterin, identified as 0x556. Based on the market price of ETH at the time, the transfer was worth $1.72 million.

Numerous ETH Transfers in a Short Time

On September 19, the 0x556 wallet received 1,300 ETH, valued at $3.21 million, from another wallet, 0xd04. The latter was initially funded by Vitalik Buterin with 70,000 ETH back in 2022. However, it took the 0x556 wallet about 11 days to transfer all 1,300 ETH to Paxos.

It has capitalized on the altcoin's price recovery. With an average sale price of $2,581 per ETH, the transfer reached $3.35 million.

This is noteworthy because it is part of a more extensive series of transfers by the Ethereum co-founder. On August 30, Lookonchain reported the transfer of 800 ETH, worth approximately $2.1 million, to a multi-signature wallet.

Of these, 800 ETH were transferred to the multi-sig wallet, and 190 ETH were swapped for 477,000 USDC. The transfer raised eyebrows, mainly as the market was characterized by intense volatility.

Market Reaction and Price Decline

While the cryptocurrency community was still speculating whether a Vitalik Buterin selloff was on the horizon, he transferred another 190 ETH, valued at approximately $441,971 at a later date. The altcoin has responded to the offloads, as it is currently facing a price decline.

At the time of this writing, Ethereum traded at $2,631.13 after experiencing a price dip of 0.74% in the last 24 hours.

A few analysts have voiced concerns that Ethereum needs more significant upside momentum. This concern comes amid a broader crypto market rebound fueled by the upcoming October bullish narrative.

Generally, the altcoin has seen some rebound, too, consistently closing above the 50-day Moving Average (MA). Still, Ethereum has not yet performed as expected.

Future Projections

It could retrace to the support level of around $2,250 in the near term before rebounding towards its all-time high (ATH). From a technical standpoint, if the price of the coin fails to rise above July's peak of about $3,566 in the coming weeks, the macro falling trend that began in March is likely to push the altcoin below $2,000.

Vitalik Buterin Plans to Scale Ethereum Network

On the other hand, Vitalik Buterin is concerned about the limitations of the Ethereum network. This led him to suggest an increase in "blob count," which he says will boost the scalability of the Ethereum blockchain.

This blob count concept, which came with the significant Dencun upgrade, will be implemented using the Ethereum Improvement Proposal (EIP-7623).

"We cannot afford to let the momentum slip on moving more layer 2s over to using blobs," the Ethereum co-founder said, adding that "EIP-7623 is crucial for this because it ensures that the worst-case size of a block massively decreases."

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