Bankless co-founder David Hoffman has sold his Ethereum (ETH) coin. He argues that the “ETH is money” thesis is fully realized. The on-chain data and the daily chart show that the market is already pricing in its call.
Ether trades at around $1,975, down 2.4% on the day and around 14% over the last month. Active addresses are decreasing, and transaction fees are also increasing. Both are similar to what Hoffman described in his exit statement.
Why David Hoffman Sold His ETH
Hoffman called “ETH and money” a long-term idea. He said that it needs every part of Ethereum to beat its competitors. According to him, that bar was missed.
The co-founder of Bankless emphasizes that he is not yet on the Ethereum network. However, they do not see the ETH system reform as an asset. The protocol returns value to L2s and software instead of capturing it.
Its sale attracted a lot of interest in crypto. Hoffman has been one of Ethereum’s most vocal advocates over the past five years. What he did divided the market. Some traders agree that this point is over. Some still see ETH as a low bet for Web3.
Reject Active Addresses to Verify Lack of Network Demand
Ethereum daily addresses have fallen since early February, according to Santiment data. The metric topped 1.5 million in January. It is now close to 544,000.
This fade follows a sharp decline from above $3,400 in early December to below $2,000 today. Hoffman argues that L1 assets are ultimately purchased on fees and charges. Payments will only flow as long as users continue to take action on the initial platform.
In his own get out the informationHoffman pointed to a 2024 return to Solana and a 2026 move to NEAR. Both showed that the strength of the L1 brand is related to market share. Ethereum lost that share until 2024 and 2025.
He also mentioned BNB and TRX, the two most expensive blockchains. Their charts behave as they expect ETH after 2022. The takeaway is that payment control, not technology, sets the ceiling.
Changes in current conditions can weaken the signal. Addresses may require more than one million returns on an average of 30 days. Hoffman’s phone call.
The demand is decreasing as activities move to L2s. Those L2s pay almost everything to the Ethereum base layer.
Supply Reverses Exchanges, Suppliers Return After Many Months
The second sign on the chain cuts an interesting pattern. The supply of ETH on exchanges has dropped significantly since the end of January, from about 8.5 million to about 7 million. That decline lasted until April. The stretch seemed like a silent accumulation.
However, this trend changed in May. Trading on the exchange has risen to 7.5 million. It is now fixed at that level. Money that returns to the exchange often indicates that the owner needs to sell.
The cycle is small in detail but very important. It corresponds to a breakdown below $2,140 on the daily chart. It also includes new features downtrend in active addresses.
Hoffman argues that ETH’s bullish on-chain shares will eventually end. The network is a “giver, not a receiver.” May’s move on the exchange is consistent with that sentiment.
Handlers who piled up and dipped now distribute weakness. They are not waiting for a system update.
This behavior also corresponds to the stablecoin point in Hoffman’s piece. Ethereum establishes $ 163 billion in stablecoins today, from $ 3 billion in 2020. Its use helps the dollar more than it supports ETH. The staff is seen reading the same memo.
Net exchange results in price weakness over the next few weeks. If May’s trend continues into June, ETH could see a new bid even before the daily chart breaks. The Q1 accumulation case is no longer the same.
ETH Price Forecast to $1,920 Channel Floor
The daily chart shows ETH locked within the lower range since late April. The price was rejected from the 0.382 Fibonacci retracement at $2,382 in early May. It then lost the 0.236 level at $2,140 in mid-May.
ETH is currently trading at $1,978 and is moving towards a lower band. This position is in line with the next support seen near $1,920. A clean break below opens the way to $1,750, the previous swing is the 0 Fibonacci anchor.
Volume has been down since early February. The decline reflects the weak sentiment of buyers and sellers. Currently, the 14-day RSI is sitting near 30 and is moving towards oversold territory.
In the past, the publication of the RSI below 30 for ETH has generated arguments against the trend. However, these meetings often resume before they happen. Therefore, traders should look for a line in the $1,920 zone followed by a daily change candle.
A setup that would create bias is a daily close above $2,140. This move would retake the 0.236 Fibonacci level and open a push past $2,382. Until this happens, every meeting disappears within the downward path.
A bounce from $1,920 on rising volume would buy the bulls time. Close up below confirms Hoffman’s reading on tape. It will also put $1,750 on the table.
A retest of $1,750 would indicate a record low for ETH in 2026. It would also erase months of work that has been accumulated by property holders. Bulls need the $1,920 zone to hold well to avoid this.
Meanwhile, the channel, the chain tape, and Hoffman’s thoughts form a cohesive unit. None of these indicators are definitive on their own, but together they force the same trade. Buying ETH here is a bet that all three will cycle at the same time.
Looking at the $2,140 retracement level is the cleanest way to test whether the bears or bulls are directing another move. Until the level appears at the end of the day, the burden of proof rests with the bulls, exactly as Hoffman wrote “Why I Sold My ETH” implies.
A note Did the Bankless Founder Have the Right to Sell His Ethereum? On-Chain Data Reveals appeared for the first time BeInCrypto.
