TLDR
Ethereum transaction fees hit $45 million, highest since June 2024
Vitalik Buterin sold 1,300 ETH worth $3.35 million in past 12 days
ETH price faced resistance at $2,700, currently trading around $2,630
Ethereum ETFs saw $79 million in outflows on September 23
Buterin introduced new “Ethereum alignment” framework to reduce centralization
Ethereum, the second-largest cryptocurrency by market capitalization, is experiencing a surge in network activity as weekly transaction fees reached $45 million, the highest level since June 10, 2024.
This increase in fees suggests growing participation and usage of the Ethereum network, potentially signaling future price growth. However, the cryptocurrency market is presenting mixed signals, with Ethereum facing both positive and negative indicators.
On-chain data reveals that Ethereum co-founder Vitalik Buterin has been selling portions of his ETH holdings. Over the past 12 days, Buterin transferred approximately 1,300 ETH, valued at $3.35 million, to the cryptocurrency exchange Paxos.
The most recent transaction involved 649 ETH, worth $1.72 million, deposited within the last 24 hours. These sales occurred as Ethereum’s price showed strength, with Buterin capitalizing on the recent price recovery.
Despite Buterin’s sales, other market participants have been taking advantage of price dips. A notable Ethereum whale purchased 10,083 ETH, worth $26.8 million, demonstrating confidence in the asset’s future potential.
This smart trader with a 100% win rate in swing trading $ETH bought 10,083 $ETH($26.8M) again 8 hours ago!
Since August 12, he has traded $ETH 10 times, making money every time, with a total profit of ~$2.14M!https://t.co/a80xVafIlu pic.twitter.com/BY8aXlSHir
— Lookonchain (@lookonchain) September 30, 2024
This trader has a track record of successful ETH swing trades, having generated $2.14 billion in profits since August 12.
The Ethereum price recently faced resistance at the $2,700 level, experiencing a 2% correction in the last 24 hours. As of the latest data, ETH is trading at approximately $2,630, with a market capitalization of $316 billion.
The price movement comes amid broader market volatility, with investors bracing for potential fluctuations ahead of the release of US jobs data.
While network activity and transaction fees are on the rise, Ethereum ETFs have experienced significant outflows. On September 23 alone, these investment vehicles saw $79 million in withdrawals, marking the highest outflows since July.
This divergence between on-chain activity and institutional investment flows highlights the complex and sometimes contradictory nature of the cryptocurrency market.
In recent developments, Vitalik Buterin introduced a new “Ethereum alignment” framework aimed at enhancing the ecosystem.
This initiative focuses on balancing decentralization with ecosystem growth, reducing centralization, and supporting projects that contribute to public goods.
The framework seeks to unite researchers, client teams, and developers in building a more cohesive and decentralized Ethereum network.
Analysts are divided on Ethereum’s short-term price prospects. Some technical analysts have made bullish predictions, suggesting that Ethereum could potentially reach $10,000 by the end of the year based on fractal patterns and Fibonacci analysis.
These forecasts should be approached with caution, as the cryptocurrency market is known for its volatility and unpredictability.
The recent surge in network activity and transaction fees is generally seen as a positive indicator for Ethereum’s growth and adoption.
However, the mixed signals from ETF outflows and price resistance at key levels suggest that the market remains uncertain about Ethereum’s immediate future.
