Why did Vitalik Buterin sell $3.7M of Ethereum during the crash?

Vitalik Buterin Liquidates His Positions: Panic or Routine Management?

The crypto market, already jittery, didn’t need this. According to on-chain data revealed by Lookonchain, Vitalik Buterin sold 1,869 ETH over the past 48 hours, pocketing approximately $3.67 million. This transaction isn’t isolated: it’s part of a series of massive sales orchestrated by the founder throughout February.

In total, nearly 9,000 ETH have been liquidated by Buterin since the beginning of the month. This constant selling pressure weighs heavily on investor sentiment, while Ethereum (ETH) displays disappointing performance. Currently trading around $1,875 (down more than 5% over the last 24 hours), the asset seems unable to regain its bullish momentum.

While the exact reasons for these sales remain unclear (project funding, diversification, or simple profit-taking), the psychological impact is undeniable. When a guiding figure like Buterin sells massively during a bearish trend, the market often interprets this as a signal of weakness, accelerating panic selling movements among retail holders.

Technical Analysis: Can the $1,800 Support Hold?

From a technical perspective, Ethereum’s situation is precarious. The break of the psychological level of $2,000 has opened the door to bearish acceleration. The price now trades below its key moving averages, confirming a short-term bearish trend.

The next critical level to watch is the support zone located between $1,800 and $1,825. If buyers (bulls) fail to defend this fortress, the decline could intensify. Momentum indicators, like the RSI (Relative Strength Index), are approaching the oversold zone, which could suggest a potential technical bounce, but selling pressure remains dominant.

To restart bullish momentum, ETH must reintegrate its range and transform $1,892 into support. To invalidate the current bearish scenario, ETH will need to imperatively reconquer this level and close a daily candle above it, ideally with sustained buying volume to confirm the breakout.

Scenarios: Will Ethereum Bounce or Capitulate?

Bullish Scenario: The Bear Trap

If Ethereum manages to stabilize its price around $1,850 and form a reversal structure (like a double bottom), we could witness a technical bounce. A return of buying volumes could propel ETH toward the $2,000 resistance. A clean break of this level would rekindle interest in targeting $2,150 in the short term.

Bearish Scenario: The Fall into the Abyss

This is the dreaded scenario. If the $1,800 support gives way under pressure from Vitalik’s sales and the global market, ETH could enter a capitulation phase. The next technical target would then be around the $1,600 zone, a level that hasn’t been tested for several months and corresponds to a major bullish trendline.

Should You Buy the Fear or Wait for Stabilization?

Movements by “whales” like Vitalik Buterin are often leading indicators, but they don’t always dictate the long-term trend. With RSI in oversold territory and major support nearby, the risk/reward ratio could become interesting for contrarian investors.

However, caution is warranted. As long as the price doesn’t show clear signs of reversal above $1,900, the trend remains firmly in the hands of sellers. Patience will be required, as even a bounce to $2,150 doesn’t invalidate the long-term bearish trend. This is even a zone closely watched by traders to place shorts and take their profits.

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