Ethereum faces imminent risk of collapse to $1,475 after co-founder Vitalik Buterin executed a massive sell-off of nearly 9,000 ETH this week.
The high-profile wallet activity coincides with a broader technical breakdown, as the asset struggles to maintain support above $1,850 amidst rising sell volume and widespread market de-risking.
- Vitalik Buterin sold roughly 9,000 ETH, leaving a supply overhang of over 7,350 ETH in the updated wallet balance.
- Ethereum has officially entered a bear pennant breakdown, technically targeting a slide to $1,475 by early March.
- The sell-off aligns with a broader market retreat, significantly threatening the psychological $1,500 support level.
Why Is Founder Selling Triggering Alarm?
The market’s sharp reaction stems from both the volume of the sale and historical precedent. Founder-led selling often acts as a bearish signal for retail traders, and previous sales by Buterin have preceded price declines of almost 23%.
With roughly 7,350 ETH still remaining in the wallet, traders fear a continued supply overhang could suppress price action throughout the week.
This localized selling pressure compounds macro headwinds. Broad market sentiment has already shifted due to nervousness surrounding tariffs, which recently caused a de-risking event across major altcoins.
While long-term institutional holders like Consensys maintain significant treasuries, the immediate liquidity shock from a founder sale creates a tangible drag on short-term momentum.
Discover: The best meme coins in the world right now
Technical Breakdown Points to $1,475 Bottom
The price action on the charts confirms the bearish narrative. Ethereum has entered the “breakdown phase” of a prevailing bear pennant pattern.
Early on Monday UTC, ETH dropped approximately 5.60% in 24 hours to hover near $1,850, slicing through the pennant’s lower trendline. Rising trading volumes accompanied the move, indicating strong conviction from sellers.
According to standard technical analysis principles, a bear pennant breakdown typically resolves when the price falls by a magnitude equal to the previous downtrend’s height.
Applying this to the current chart suggests a downside target of $1,475, precisely aligning with the psychological support zone of $1,500.
While Buterin continues to advocate for protocol improvements, recently backing censorship resistance upgrades, these long-term fundamentals are currently overshadowed by chart weakness.
Can Ethereum Hold Critical Support?
The path forward depends heavily on whether buyers can defend the sub-$1,800 region.
If the bearish momentum continues, a test of $1,475 appears inevitable by early March. Conversely, invalidating this outlook requires a swift reclaim of the pennant’s lower trendline and a sustained close above the $2,000 resistance level.
Despite the current gloom, some analysts, including those at Intellectia.ai, suggest that a 2026 return to $3,000 remains firmly feasible once this correction exhausts itself.
Discover: The next crypto to explode
The post Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH appeared first on Cryptonews.
