Vitalik Buterin Sells $3.67M ETH as Ethereum Price Drops 5%

On-chain data from blockchain analytics firm Lookonchain reveals that Vitalik Buterin’s recent transaction of 1,869 ETH, which pushed ETH from around $1,980 to $1,850, mirrors a previous episode. Earlier this year, Buterin sold 6,958 ETH worth approximately $14.78 million, an event that coincided with a sharper 22% price slide from $2,360 to $1,825. The latest sales were preceded by Buterin withdrawing 3,500 ETH from the Aave lending protocol, a move also flagged by Lookonchain. In total, sales linked to Buterin have exceeded 8,000 ETH since February 2.

Buterin has provided context for these movements. Earlier this year, he stated intentions to withdraw and liquidate 16,384 ETH, explaining that the funds would be directed toward ecosystem development, open-source software efforts, and infrastructure support. He framed this as the Ethereum Foundation entering a phase of “mild austerity.” Despite the disposals, on-chain intelligence from Arkham Intelligence discloses that Buterin’s holdings remain substantial, with over 224,000 ETH valued at around $429 million at current prices. An earlier Arkham analysis confirmed that Buterin’s wealth remains overwhelmingly concentrated in ETH, with limited diversification into other assets.

While Buterin reduces his ETH exposure, prominent crypto entrepreneur Erik Voorhees, founder of ShapeShift, is executing a contrasting strategy. About a year ago, Voorhees sold 11,616 ETH for approximately $33.94 million at an average price of $2,922. Recently, however, he has begun repurchasing, spending around $20.38 million in the stablecoin USDC to acquire 9,911 ETH at an average price of $2,057. This buyback represents a strategic pivot and highlights a divergence in sentiment and timing between two influential figures in the Ethereum ecosystem.

The opposing actions of Buterin and Voorhees occur against a backdrop of sustained pressure on ETH. The crypto asset has been in a broader downtrend since reaching highs above $4,900 in August of last year. This environment of declining prices and uncertain momentum creates a complex landscape where founder and investor behavior is scrutinized for signals about future price direction and confidence in the network’s near-term prospects.

Market analysts are sounding alarms about Ethereum’s technical health. Crypto market account Whale Factor has warned that Ether is approaching a “massive crossroads,” pointing to a recent breakdown below a long-standing trend line that was followed by a sharp 41% sell-off. This move was characterized as severe and destabilizing for market structure. According to this analysis, ETH is now trading near a critical support zone around $1,750. A failure to hold this level could accelerate downside risk, potentially leading to a deeper decline reminiscent of conditions seen earlier in the year.

Compounding these technical warnings is the issue of thin liquidity. With fewer buyers present in the market to absorb selling pressure, price moves in either direction can be amplified. This liquidity crunch means that sustained selling, whether from large holders like Buterin executing planned disposals or from broader market panic, could have an outsized impact on ETH’s price. The combination of broken technical levels, a key support test, and poor liquidity paints a picture of a fragile market condition for the world’s second-largest cryptocurrency.