Ethereum co-founder Vitalik Buterin's recent large-scale ETH sales have increased pressure on an already weak market. According to on-chain data, Buterin sold a total of 1,869 Ether in two days, creating approximately $3.67 million in liquidity. The sales coincided with a period when the price was approaching a technically critical breakout point. Data shared by the blockchain analytics platform Lookonchain shows that before the sale, Buterin withdrew 3,500 ETH from the decentralized finance protocol Aave. The subsequent sales made the already ongoing downward trend in the market even more visible. Market data shows that the Ethereum price has fallen by approximately 3 percent in the last 48 hours, dropping to $1,844 on Monday morning. This marks ETH's lowest level in 20 days. Vitalik Buterin's sales are not new. On January 30th, he announced that he would be gradually withdrawing and selling a total of 16,384 ETH through his organization, Kanro. It was stated that these funds would be used to develop the Ethereum ecosystem, open-source software, and finance long-term projects. During the same period, it was also stated that the Ethereum Foundation was undergoing a "moderate austerity process."
According to data from the on-chain analytics company Arkham Intelligence, Buterin has sold off approximately 9,000 ETH in installments since the beginning of February. With sales accelerating in the last two days, the total amount has increased further. Despite this, Buterin still holds over 224,000 ETH in his wallets; the current market value of these assets is approximately $429 million.
Vitalik Buterin's sales are impacting the market
It is known that founder-related sales have had an impact on the market in the past. In May 2021, following a transfer of 35,000 ETH linked to the Ethereum Foundation, the price fell by approximately 50 percent within weeks. The 20,000 ETH transferred to the Kraken exchange in November 2021 coincided, in retrospect, with ETH reaching its peak of $4,700. On the other hand, there are also actors moving in the opposite direction in the market. ShapeShift founder Erik Voorhees and some large investors reportedly linked to Matrixport are said to be absorbing the selling pressure. However, the increase in supply stemming from the founder and the general risk-aversion trend indicate that pressure on the Ether price may continue in the short term. All these developments make the question of whether Ether will test the $1,500 band in the coming days even more critical. The market is closely monitoring both technical levels and Buterin's remaining potential sales.
