Ethereum Hits 5-Month High Amid Mixed Signals from Founders’ Token Movements

Ethereum (ETH) has surged to a five-month high, briefly crossing the $3,600 mark on Thursday – an 8% weekly gain – before paring gains to sit around $3,573 currently, according to Binance market data. Its outperformance relative to Bitcoin has reigniting speculation about an altcoin season.

However, recent token transfers by Ethereum co-founder Jeffrey Wilcke and the Ethereum Foundation (EF) have raised concerns within the community, casting a shadow over the otherwise bullish sentiment.

The Ethereum Rainbow Chart, which tracks historical price data across various zones, currently places Ethereum in the “Steady” (yellow) zone, suggesting moderate growth potential. For ETH to transition into higher valuation zones, such as “HODL!” (orange) or “Maximum Bubble Territory” (red), it would need to breach the $4,000 mark convincingly.

Despite the rally, Ethereum has lagged behind other major cryptocurrencies like Bitcoin and Solana, which have recorded returns of 121% year-to-date and 135% respectively, compared to ETH’s 55%. This disparity has left investors wary, especially as high-profile Ethereum-related wallets show significant outflows.

BRN lead analyst Valentin Fournier notes that despite the momentum being relatively bullish, no positive news is currently affecting Ethereum and he expects it to underperform Bitcoin in the short term.

"This weekly +6% despite a general correction is very welcomed but does not compensate the massive underperformance since the beginning of the year. BTC/ETH is up 43.70% YTD and down less than 1% over the month," the analyst said.

Insider Offloading

Co-founder Jeffrey Wilcke recently transferred 20,000 ETH (worth $72 million) to Kraken, marking his fourth major transaction to the exchange in 2024, SpotOnChain reported on Thursday, citing Arkham Intelligence data. This brings his total ETH moved this year to over $147 million, though Wilcke still holds some 106,000 ETH.

These transfers follow similar moves by the Ethereum Foundation, which shifted 35,000 ETH ($94 million) in August. Such actions have sparked speculation about potential insider profit-taking, despite public assurances that the sales aim to support Ethereum’s ecosystem.

Vitalik Buterin, another co-founder, has also been under scrutiny, with his wallets showing a negative net flow of 6,000 ETH this year. Buterin has clarified that his transactions were for philanthropic and ecosystem support purposes, rather than personal profit.