Ethereum Encounters $1,500 Decline as Vitalik Buterin Offloads 9,000 ETH

Ethereum is facing a significant risk of dropping to $1,475 following a substantial sell-off by co-founder Vitalik Buterin, who liquidated nearly 9,000 ETH this week.

vitalik.eth(@VitalikButerin) is offloading $ETH at an accelerated pace again.
In the last 48 hours, he has sold 1,869 $ETH ($3.67M). During this period, $ETH decreased from $1,988 to $1,875, a decline of 5.7%.
Previously, when he sold 6,958 $ETH ($14.78M), $ETH fell from $2,360 to $1,825 — a drop of 22.7%.… pic.twitter.com/v2x6Q3ZTme

— Lookonchain (@lookonchain) February 23, 2026

This notable wallet activity aligns with a wider technical downturn, as the asset struggles to hold support above $1,850 amid increasing sell volume and a general market de-risking trend.

• Vitalik Buterin has sold approximately 9,000 ETH, resulting in a supply overhang of over 7,350 ETH in the revised wallet balance.
• Ethereum has officially entered a bear pennant breakdown, with a technical target indicating a decline to $1,475 by early March.
• The sell-off corresponds with a broader market retreat, posing a significant threat to the psychological support level of $1,500.

Why Is Founder Selling Triggering Alarm?

The market’s swift reaction is attributed to both the sale’s volume and historical context. Sales initiated by founders often serve as a bearish indicator for retail investors, and past transactions by Buterin have preceded price drops of nearly 23%.

With around 7,350 ETH still in the wallet, traders are concerned that the ongoing supply overhang may hinder price movement throughout the week.

This localized selling pressure exacerbates macroeconomic challenges. Overall market sentiment has already shifted due to concerns regarding tariffs, which recently triggered a de-risking event across major altcoins.

While long-term institutional holders like Consensys maintain substantial reserves, the immediate liquidity shock from a founder’s sale imposes a noticeable drag on short-term momentum.

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Technical Breakdown Points to $1,475 Bottom

The price movements on the charts support the bearish outlook. Ethereum has entered the “breakdown phase” of an existing bear pennant pattern.

Early on Monday UTC, ETH fell roughly 5.60% within 24 hours, settling around $1,850, breaking through the pennant’s lower trendline. Increased trading volumes accompanied this movement, reflecting strong seller conviction.

Source: TradingView

According to conventional technical analysis guidelines, a bear pennant breakdown typically resolves when the price declines by an amount equivalent to the height of the preceding downtrend.

Applying this to the current chart indicates a downside target of $1,475, which aligns precisely with the psychological support zone of $1,500.

While Buterin continues to support protocol enhancements, recently endorsing upgrades for censorship resistance, these long-term fundamentals are currently overshadowed by chart weaknesses.

Can Ethereum Hold Critical Support?

The future trajectory largely hinges on whether buyers can defend the sub-$1,800 area.

If bearish momentum persists, a test of $1,475 seems unavoidable by early March. On the other hand, negating this outlook necessitates a rapid reclaim of the pennant’s lower trendline and a sustained close above the $2,000 resistance level.

Despite the current pessimism, some analysts, including those at Intellectia.ai, propose that a return to $3,000 in 2026 remains entirely plausible once this correction runs its course.

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