Vitalik Buterin Sells 10,000+ ETH as Ethereum Tests Key Support
Ethereum’s recent price drop has coincided with sizeable sales from its co-founder, Vitalik Buterin — and that’s enough to get the market talking.
On-chain data shows Buterin has sold 10,723 ETH since early February, worth roughly $21.7 million. The timing is sensitive: Ether is currently struggling to hold the $1,825 support zone after a steep multi-week correction.
Whenever a founder sells, speculation follows. Buterin has previously said that his token sales are intended to fund open-source development and security-focused initiatives. Still, steady selling during a weak market inevitably adds to bearish sentiment.
Key Takeaways
$21.7 million sold: 10,723 ETH liquidated since February 2 at an average price of around $2,027.
Selling accelerated recently: 3,765 ETH (about $7.08 million) was sold between February 21 and February 24.
ETH under pressure: The token has fallen roughly 38% over the past 30 days and is now testing support near $1,825.
Why the Market Is Paying Attention
Founder selling almost always makes traders uneasy, regardless of the stated reason.
Even if the funds are earmarked for ecosystem development, over 10,000 ETH entering the market creates real supply pressure. And traders aren’t just focused on what’s already been sold — they’re watching what might come next.
Reports suggest the original allocation linked to this wallet was 16,384 ETH, meaning roughly 6,000 ETH could still potentially be sold.
The pace of sales has also picked up. While the selling began on February 2, the heaviest activity occurred over the past few days. Notably, the average sale price of $2,027 means Buterin sold ahead of the latest leg down, with ETH now trading closer to $1,825.
That detail hasn’t gone unnoticed.
Could Ethereum Fall to $1,500?
From a technical perspective, Ethereum’s structure has weakened.
After losing the psychological $2,000 level, price action confirmed a bear flag breakdown on the daily chart. The RSI is nearing oversold territory, suggesting selling may be stretched — but momentum indicators like the MACD have yet to signal a clear reversal.
Immediate support sits around $1,800. If ETH closes decisively below that level, the next major liquidity zone appears closer to $1,500.
Adding to the bearish case, the 50-day EMA has crossed below the 200-day EMA — a classic “death cross” that typically reinforces a broader downtrend.
The Bigger Picture
It’s worth keeping perspective.
Buterin has a long history of selling ETH periodically to fund public goods, research, and ecosystem initiatives. That’s not new. What makes this episode feel different is the timing: Ethereum is already under pressure, and confidence is fragile.
For now, traders are watching two things closely:
Whether selling continues.
Whether $1,800 support holds.
If support stabilizes, the narrative could quickly shift back to accumulation. But if it breaks, volatility is likely to increase.
