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High-profile on-chain activity connected to Ethereum Cofounder Vitalik Buterin seems to be the most recent catalyst for the severe selling pressure that Ethereum is currently experiencing. Blockchain tracking data indicates that over the past three days wallets linked to Buterin have bought and sold about 2,961.5 ETH, or roughly $6.6 million, at an average execution price of about $2,228.
Worst timing possible
The timing of this activity is critical for Ethereum's price structure. ETH has already lost important support zones on the daily chart, which were once strong consolidation areas around $2,800 and $2,700. One of the biggest sell-offs since mid-2025 occurred as a result of the most recent breakdown, which drove the price quickly toward the $2,100-2,200 range. Sellers, not passive holders, are driving the current price action, as evidenced by the volume spike during the decline.
Technically speaking, Ethereum is currently trading well below major moving averages, and all short- and midterm trend indicators are pointing downward. Even though the RSI readings have reached extremely oversold levels, the price is still having trouble holding rebounds. When traders are still taking risks, oversold conditions are insufficient to halt momentum, which makes the psychological $2,000 level the crucial battleground.
Ethereum ready to dive
Ethereum may easily fall below this barrier if selling pressure continues and overall cryptocurrency sentiment remains subdued. The price might move toward deeper support zones created in early 2025 if there were a break below $2,000, which would probably lead to more liquidations and panic-selling.
Notably, though significant wallet movements do not always indicate bearish intent, funding for ecosystems, donations, operational costs and protocol development are all common examples of transfers. However, markets respond to perception, and significant ETH withdrawals from well-known individuals invariably increase trader anxiety.
The upcoming sessions will be important for investors, and in order to prevent further structural damage, Ethereum needs to stabilize above $2,000. Failure to do so could cause the story to change from one of correction to a protracted bear phase, with recovery taking far longer than bulls had anticipated.
Godfrey Benjamin
Arman Shirinyan
Yuri Molchan
Alex Dovbnya