Ether (ETH) is poised to challenge the $1,500 support level following a technical breakdown and selling pressure from co-founder Vitalik Buterin. The cryptocurrency broke a key bearish pattern, with a technical target near $1,475. Buterin’s ongoing distribution of ETH to fund initiatives adds to the selling overhang, echoing historical patterns where similar founder-linked transfers preceded significant price declines.
Ethereum’s native token, Ether, is trending toward a test of the $1,500 support level. This follows a breakdown from a bearish continuation pattern and ongoing sales by co-founder Vitalik Buterin.
On Monday, ETH’s price dropped over 5.60% to about $1,850 amid broader market sentiment. The move breached the lower trendline of a bear pennant pattern with rising volume, confirming trader conviction. The breakdown points to a potential downside target of $1,475, near the key $1,500 level, by early March.
Buterin said he would sell 16,384 ETH via his Kanro entity to fund long-term initiatives. Onchain tracker Arkham Intelligence has flagged approximately 9,000 ETH sold in batches since early February, with the pace increasing recently. “Vitalik Buterin is selling ETH faster again,” stated onchain resource Lookonchain.
Ethereum’s price has fallen 18.55% in February, aligning with Buterin’s distribution. History shows founder-linked supply can amplify bearish sentiment among traders. For instance, a May 2021 transfer of 35,000 ETH preceded a 50% price drop within weeks.
Furthermore, an Ethereum Foundation transfer of 20,000 ETH in November 2021 coincided with ETH’s price peak near $4,700. Such conditions increase the odds of ETH reaching its technical target below $1,500 in the coming days.
