Ethereum Slides to $1,875 as Vitalik Buterin Trims Holdings

Key Insights:

• Ethereum price slipped as Vitalik Buterin continues ETH selling.
• Balances in exchanges increased by 2.4%, and whales disposed of 230,000 ETH since Feb 19.
• $2,050 cost-basis cluster forms major resistance; failure at $1,890 support risks retest of $1,740 lows.

Vitalik Buterin’s ETH sales are adding renewed pressure on the market. The Ethereum co-founder sold 1,869 ETH worth $3.67 million in 48 hours.

During that window, Ethereum (ETH) price dropped from $1,988 to $1,875. That marks a 5.7% decline.

February totals now stand at 8,800 ETH sold, valued at nearly $16 million. Traders remember the last major founder sale that preceded a 23% correction.

This context has amplified the reaction to the latest move.

Vitalik Buterin Offloads Ethereum | Source: Lookonchain, X

Data from Lookonchain tracked the transactions. The sales followed earlier February disposals of 3,500 ETH worth $6.95 million. Buterin also withdrew 571 ETH from Aave before selling.

On January 30, Buterin referenced “mild austerity” for the Ethereum Foundation. He withdrew 16,384 ETH for gradual operational use.

However, selling activity accelerated from February 2, with three-day sales totaling $6.6 million at an average of $2,228 per coin.

Trading volume has risen 33% to $15.24 billion. Higher activity during a decline reflects volatility, not strength. Sentiment remains fragile as Ethereum price trades near $1,872.

Vitalik Buterin Offloads Ethereum, Sparking Concerns

On-chain metrics show liquidity building on exchanges. Data from Glassnode reveals balances increased from 14,241,203 ETH to 14,586,720 ETH. That equals a rise of 345,500 ETH, or 2.4%, in a short period.

These levels mirror February 4. On that date, Ethereum price fell from $2,140 to $1,820 within one day. Rising exchange supply often signals readiness to sell.

Staking participation has also softened. Lower staking demand increases the liquid supply in circulation. This change will help decrease the stability of prices in weak momentum.

Whale positioning adds another layer. According to Santiment, large holders reduced balances from 113.65 million ETH to 113.42 million ETH since February 19.

That equals roughly 230,000 ETH sold in three days.

Ethereum Whales Supply | Source: Santiment

This sale occurred during a recovery attempt. Instead of supporting the bounce, whales appear to be trimming exposure.

Increase of the activity in a downturn is a sign of volatility and not strength. The sentiment is weak as Ethereum price traded around $1,872.

Ethereum Price Slips as Market Concerns Remain

On-chain liquidity indicates the accretion of liquidity on exchanges. The URPD metric shows more than 2 percent of the Ethereum supply sits between $2,020 and $2,070.

Many investors bought within this band. When Ethereum price revisits these levels, holders often sell to break even.

That creates supply congestion. As a result, $2,050 stands as a decisive short-term barrier for ETH price.

A sustained break above $2,050 could open a path toward $2,140. Beyond that, $2,300 becomes the next upside zone for Ethereum price. Yet current liquidity conditions make this climb difficult.

Support rests near $1,890. This area lies about 4% below recent prices, around $ 1,872. A break beneath support may expose the February low near $1,740.

Charts show early bullish divergence. However, falling staking demand, rising exchange balances, and continued Vitalik Buterin ETH sales complicate recovery efforts.

Direction has turned into Liquidity flows. Market players still sit at $2,050 to establish whether they have broken out or rejected.

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