Ethereum is at risk of crashing to $1,475 after co-founder Vitalik Buterin completed a massive sell-off of nearly 9,000 ETH this week.
vitalik.eth(@VitalikButerin) sells $ETH again faster.
In the last 2 days he sold 1,869 $ETH($3.67 million). Meanwhile, $ETH fell from $1,988 to $1,875, down 5.7%.
Last time he sold 6,958 $ETH($14.78 million), $ETH fell from $2,360 to $1,825, a drop of 22.7%… pic.twitter.com/v2x6Q3ZTme– Lookonchain (@lookonchain) February 23, 2026
This high-level portfolio activity coincides with a broader technical breakdown, with the currency struggling to maintain support above $1,850 amid high selling volume and a general risk-averse mood in the market.
- Vitalik Buterin sold approximately 9,000 ETH, leaving an oversupply of over 7,350 ETH in the updated wallet balance.
- Ethereum has officially entered the breakout phase of a “bear pennant” pattern, technically targeting a decline to $1,475 by early March.
- The sell-off is in line with a broader market pullback, significantly threatening the psychological support level of $1,500.
Why are founder sales ringing alarm bells?
YesThe strong market reaction stems from both sales volume and historical precedent. Founders’ sales are often a bearish signal for retail traders, and Buterin’s previous sales were preceded by price drops of around 23%.
With around 7,350 ETH remaining in the wallet, traders fear that continued oversupply could pressure price action throughout the week.
These domestic selling pressures are accompanied by headwinds at the macro level; Overall market sentiment has already changed due to concerns over tariffs, which have recently caused a wave of risk-offs among major altcoins.
While large institutional holders like Consensys retain significant holdings in their treasuries, the immediate liquidity shock resulting from founder sales creates a tangible drag on short-term momentum.
Technical Outage Points to Bottom at $1,475
The price action on the charts confirms the bearish scenario, as Ethereum has entered the “breakout phase” of the dominant bearish flag pattern.
Early Monday (UTC), ETH price fell approximately 5.60% in 24 hours to near the $1,850 level, breaking the pennant’s lower trendline. This movement was accompanied by an increase in trading volumes, demonstrating strong conviction among sellers.
According to standard principles of technical analysis, a breakout of the bear flag is generally complete when the price declines by an amount equal to the duration of the previous downtrend.
Applying this to the current chart, a downside target appears at $1,475, which is exactly the psychological support zone at $1,500.
Although Buterin continues to call for improvements to the protocol and recently supported strengthening resistance to censorship, these long-term fundamentals are currently overshadowed by the chart’s weaknesses.
Can Ethereum Maintain Critical Support Levels?
Future developments largely depend on whether buyers can defend the sub-$1,800 zone.
If the bearish momentum continues, a test of the $1,475 level seems inevitable in early March. Conversely, invalidating this forecast will require a rapid reestablishment of the flag’s lower trendline and a sustained close above the $2,000 resistance level.
Despite the current gloom, some analysts, including the team at Intellectia.ai, see a return to $3,000 in 2026 still entirely possible once this correction is over.
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