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Vitalik Buterin has been liquidating his holdings as the price of Ethereum declines. Some may speculate that he has lost faith in his blockchain or in cryptocurrency as a whole.
On-chain data indicates that the Ethereum co-founder has sold 10,723 ETH, valued at approximately $21.7 million, since early February. These transactions occur at a critical time, with Ether struggling to maintain the $1,825 support level.
The timing has raised questions, but Buterin has stated that previous sales are intended to finance open-source initiatives; consistent selling by a founder during a sluggish market naturally contributes to negative sentiment.
Key Takeaways
- $21.7 Million Liquidated: Buterin has offloaded a total of 10,723 ETH since February 2, with an average sale price of around $2,027 per token.
- Recent Acceleration: Data reveals that 3,765 ETH ($7.08 million) was sold in just three days leading up to February 24.
- Bearish Market Structure: These sales align with a 38% decline in ETH’s value over the past month, currently testing support near $1,825.
The Ethereum Offloading Triggering Alarm?
A founder’s selling activity typically unsettles the market, regardless of the rationale, and Buterin has mentioned that the proceeds are directed toward open-source and security-oriented projects. Nevertheless, the influx of over 10,000 ETH into the market generates significant sell pressure.
Traders are not only responding to the $21.7 million already liquidated; they are also monitoring potential future sales. The initial allocation was 16,384 ETH, suggesting that approximately 6,000 ETH may still be available for sale.
The sales commenced on February 2 and persisted throughout the month. The most intense selling occurred recently, with 3,765 ETH sold for $7.08 million between February 21 and February 24.
Source: Arkham
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The average execution price during these three weeks stands at $2,027. With Ethereum currently trading around $1,825, Buterin effectively anticipated the latest 10% decline.
Ethereum Price Could Dip To $1,500 Is Very Likely Now
Ethereum’s structure has evidently weakened after breaching the $2,000 psychological threshold.
The daily chart indicates a confirmed bear flag breakdown. The RSI is nearing oversold territory, but the MACD has not yet shown a bullish crossover, suggesting that momentum still favors sellers.
Source: ETHUSD / TradingView
Immediate support is positioned around $1,800. A daily close below this level would pave the way to the $1,500 area, where liquidity had previously accumulated. The 50-day EMA has also crossed below the 200-day EMA, creating a classic death cross that reinforces the downtrend.
To negate the bearish scenario, bulls would need to reclaim $2,150 with substantial volume. Until that occurs, upward movements are likely to encounter selling pressure, particularly with ongoing founder distribution increasing supply.
Monitor the $1,780 to $1,820 range closely. A rebound could form a double bottom. A decisive break lower, and $1,475 becomes the next logical target.
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