Vitalik Buterin accelerates ETH sales amid renewed market weakness

Recent Buterine-linked ETH selling comes as ether continues a multi-month downtrend from last year’s highs above $4,900.

Vitalik Buterin has once again ramped up the selling of ETH. Data from the chain showed that the Ethereum co-founder sold 1,869 ETH worth about $3.67 million over the past two days.

During the same period, Ethereum’s native token fell from around $1,980 to $1,850, a drop of more than 5%.

ETH sales

The transaction pattern is similar to a previous episode, when Buterin sold 6,958 ETH worth approximately $14.78 million, which coincided with a sharper price drop of 22% from $2,360 to $1,825, according to an update. shared by blockchain analytics company Lookonchain.

The latest sales came a day after Lookonchain marked Buterin’s withdrawal of 3,500 ETH from Aave. ETH is under pressure as the broader market downtrend continues since the crypto asset peaked above $4,900 in August last year.

According to data, the turnover linked to Buterin has exceeded 8,000 ETH since February 2. Earlier this year, Buterin said he would withdraw and liquidate 16,384 ETH, explaining that the funds would be focused on ecosystem development, open source software efforts, and infrastructure support as the Ethereum Foundation enters a phase of “mild cuts.”

Despite the recent divestitures, on-chain intelligence from Arkham Intelligence revealed that Buterin still holds over 224,000 ETH, which is valued at approximately $429 million at current market prices. A previous Arkham analysis of Buterin’s wallet activity found that Buterin’s wealth remains largely tied to the price trend of ETH, with limited diversification into other assets.

Unlike Buterin’s recent ETH sales, Erik Voorhees is moving in the opposite direction. The founder of ShapeShift has started buy back ETH after selling a large part last year.

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About a year ago, Voorhees sold 11,616 ETH for approximately $33.94 million at an average price of $2,922. More recently, he spent approximately $20.38 million in USDC to buy back 9,911 ETH at an average price of $2,057.

Vulnerable market conditions

Crypto market account Whale Factor warned that Ether is approaching a “major crossroads” and pointed to a recent collapse below a long-standing trendline, followed by a sharp 41% sell-off, which was characterized as severe and destabilizing to the market structure.

According to Whale Factor, the altcoin is now trading near a critical support zone around $1,750. If this level does not hold, downside risk could increase and potentially lead to a deeper decline, similar to conditions earlier this year. ETH also faces limited liquidity, meaning fewer buyers are available to absorb selling pressure, which could amplify price movements.