Ethereum Price Prediction After Buterin Sold 17,000 ETH
Ethereum is navigating a fragile technical recovery as on-chain data shows wallets linked to co-founder Vitalik Buterin reduced holdings by roughly 17,000 ETH in February. With ETH hovering near $1,900, traders are weighing psychological selling pressure against oversold technical signals in a market still dominated by medium-term bearish momentum.
On-Chain Selling Pressure Reshapes Short-Term Sentiment
Data from Arkham Intelligence indicates that wallets associated with Buterin declined from approximately 241,000 ETH at the start of February to around 224,000 ETH by month’s end. The reduction — about 17,000 ETH — was executed gradually through CoW Protocol using staggered swaps, a method designed to limit slippage and visible market impact.
While Buterin has previously liquidated ETH to fund philanthropic initiatives and ecosystem development, the timing has drawn scrutiny. The sales occurred during a broader period of crypto market consolidation, when liquidity remains thinner and directional conviction weak.
Market structure often reacts not only to volume but to identity. When a founder reduces exposure, even for operational reasons, it introduces a psychological overhang. Traders tend to question whether insider conviction is softening, regardless of the underlying intent.
At current prices near $1,900, 17,000 ETH represents roughly $32–33 million in notional value — material enough to influence short-term order flow perception, though small relative to Ethereum’s broader circulating supply.
Ethereum Technical Outlook: Recovery Attempt or Bear Market Pause?
Ethereum has retreated sharply from the $3,400 zone earlier this year, finding interim stability near the $1,800 psychological support level.
As of February 25, ETH trades around $1,915, registering a modest intraday gain. Yet the broader technical structure remains tilted downward.
Key Indicators
- 50-day Simple Moving Average (SMA): Approximately $2,538
- Current Price: ~$1,915
- RSI (14-day): 35.5
The wide gap between price and the 50-day SMA underscores that medium-term momentum remains bearish. Sustained recovery would require reclaiming the $2,000–$2,100 resistance band, where prior breakdowns occurred.
However, momentum oscillators are signaling exhaustion. The RSI has rebounded from oversold territory and is forming a mild bullish divergence — a pattern that often precedes short-term relief rallies, particularly after extended drawdowns.
Critical Support and Resistance Zones
Ethereum is positioned between decisive technical thresholds:
- Immediate Resistance: $2,000–$2,100
- Primary Support: $1,850
- Secondary Downside Target: $1,700
If $1,850 fails to hold on high volume, sellers could accelerate momentum toward the $1,700 horizontal support zone. Conversely, a daily close above $2,100 would challenge the prevailing bearish narrative and open the path toward retesting the 50-day SMA.
For now, price action suggests equilibrium rather than conviction. Volatility compression following sharp declines often precedes directional expansion, but confirmation is absent.
Founder Activity vs. Macro Forces
Founder-linked sales frequently generate outsized attention, yet Ethereum’s valuation is currently more sensitive to broader macro liquidity, ETF flows, and Bitcoin correlation than to isolated wallet movements.
Institutional desks increasingly monitor on-chain founder behavior through analytics platforms such as Arkham. Still, execution via decentralized protocols like CoW suggests the intent was structured, not impulsive.
Market participants appear divided. Some view the activity as routine treasury management. Others interpret it as incremental supply entering a fragile market structure.
Ethereum Price Prediction: Wait-and-React Phase
Ethereum sits in what traders describe as a “decision zone.” Oversold indicators argue for a technical bounce, but structural trend indicators remain negative.
Near-term outlook scenarios:
- Bullish Case: Reclaim $2,100, target $2,350–$2,500 region.
- Neutral Case: Consolidate between $1,850 and $2,050 while volume stabilizes.
- Bearish Case: Break below $1,850, test $1,700 support.
Absent a macro catalyst, price direction will likely hinge on liquidity conditions and broader crypto sentiment rather than a single wallet’s activity.
Key Takeaways
- Vitalik Buterin-linked wallets reduced holdings by roughly 17,000 ETH in February, according to Arkham Intelligence.
- Ethereum is trading near $1,900, below its 50-day SMA at approximately $2,538.
- RSI indicates recovering from oversold conditions, suggesting potential short-term relief.
- $1,850 is critical support; $2,000–$2,100 remains immediate resistance.
- Market sentiment is balancing psychological founder selling against technical rebound signals.
Source: Crypto.news reporting by Ann Maria Shibu; on-chain data from Arkham Intelligence.