Key Takeaways
Over the past two days alone, 1,869 ETH worth roughly $3.67 million were sold shortly after withdrawals from Aave, intensifying scrutiny around insider positioning.
The transactions coincided with a sharp price retracement. ETH declined from $1,988 to $1,875 in the immediate aftermath, a 5.7% drop, following an earlier 22.7% fall from $2,360 to $1,825 earlier in the month. As of February 23, 2026, Ethereum trades between $1,860 and $1,907, down roughly 34.35% year-to-date.
Buterin has historically maintained that ETH sales from his wallets are intended to support ecosystem development or philanthropic initiatives rather than personal profit-taking. However, February 2026 marks one of the more concentrated selling periods in recent years.
The transactions were executed from wallet “0xfEB016D0D14AC0Fa6d69199608B0776d007203B2,” with rapid transfers following Aave withdrawals. In several instances, ETH was converted into stablecoins, including 428.57 ETH swapped for approximately $850,178 worth of GHO. Earlier in the month, 6,958 ETH worth $14.78 million were sold at average prices near $2,100.
The activity follows a January 30 statement referencing “mild austerity” in long-term resource allocation, creating a contrast between public positioning and accelerated on-chain execution.
Ethereum’s broader market performance has deteriorated alongside these sales. ETH is down 36% over the past month, while the total crypto market capitalization has declined between 3.5% and 4.04% in recent sessions, hovering near $2.24–2.32 trillion.
Ethereum’s market capitalization has compressed to approximately $224–241 billion, down from $325.71 billion a year ago. ETH dominance has slipped toward 9.7%–10.1%, reflecting relative underperformance.
A key structural driver is declining staking participation. Net staking reversals in February have increased the amount of liquid ETH available for trading, raising effective circulating supply during a period of weak demand. Current staking participation remains around 32%–34% of total supply, below prior peaks.
Buterin continues to hold approximately 224,105 ETH even after the February disposals, underscoring that the sales represent only a fraction of total holdings but still carry signaling weight.
Large-holder sales during periods of market stress often have an outsized psychological impact. While the absolute size of Buterin’s disposals is modest relative to Ethereum’s total market capitalization, the timing amid record exchange inflows and declining staking has amplified downside sentiment.
From a technical perspective, Ethereum appears to be forming a bearish continuation structure. Support is clustered between $1,500 and $1,825, with $1,500 emerging as a potential downside target if exchange supply continues to rise. Resistance sits near $2,000, a level that would require sustained spot demand to reclaim.
RSI levels remain in lower neutral-to-bearish territory, while MACD momentum continues to signal negative divergence on higher timeframes. Liquidations have largely impacted long positions, reinforcing near-term downside volatility.
The broader implication is a temporary repricing of risk across the Ethereum ecosystem. Reduced staking lowers the supply lock-up effect that previously helped dampen volatility, while exchange inflows suggest investors are prioritizing liquidity over yield.
The weakness is not isolated to Ethereum. Bitcoin has traded between $64,563 and $64,770, down more than 4% on recent sessions. Major altcoins including Solana and XRP have declined between 2% and 5% amid broader deleveraging.
Total crypto liquidations have ranged between $238 million and $324 million in 24 hours, indicating elevated leverage across derivatives markets. Thin liquidity conditions reflected in Ethereum’s 4.8% volume-to-market-cap ratio suggest price swings may remain amplified in either direction.
Vitalik Buterin’s $18.45 million in ETH sales during February 2026 have coincided with record $33.3 billion exchange inflows and a 34.35% year-to-date decline in Ethereum’s price. While the disposals represent a relatively small portion of total supply, their timing amid weakening staking demand and elevated leverage has intensified short-term supply pressure.
The episode underscores a broader structural dynamic: liquidity preference is rising during a macro-driven downturn, reducing the buffering effect of staking and amplifying price sensitivity to large-holder movements. Whether Ethereum stabilizes near current levels will depend on renewed staking demand, technical support around $1,500–1,825, and the market’s response to upcoming protocol upgrades.
Volatility remains elevated, and positioning suggests further range expansion is possible. Market participants will likely monitor exchange flows, staking trends, and macro conditions as key indicators of Ethereum’s near-term trajectory.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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