Will Ethereum Fall Below $1,500? Buterin’s Selling Adds Uncertainty

▲ Ethereum (ETH), Vitalik Buterin / AI-generated image ©

Ethereum is facing growing speculation that it could fall below $1,500 as technical breakdown signals coincide with selling pressure from its founder.

According to investment-focused outlet FXStreet on February 23 (local time), Ethereum (ETH) recently plunged about 5.60%, slipping to the $1,850 level. Amid broad risk-off sentiment driven by tariff concerns, ETH broke below the lower trendline of a bearish pennant pattern on the charts, accompanied by rising trading volume, increasing the likelihood of further downside.

The bearish pennant pattern often leads to an additional decline equivalent to the prior drop. Applying this measure projects a short-term target of $1,475, aligning with the psychological support level of $1,500. The anticipated timeframe is between late February and early March. To invalidate the bearish scenario, ETH would need to reclaim the lower boundary of the pennant and break above the 20-day exponential moving average (EMA) at $2,085, the outlet reported.

Supply factors are also weighing on the market. Ethereum co-founder Vitalik Buterin announced on January 30 that he would withdraw and sell 16,384 ETH through Kanro. The funds are intended to support the ecosystem and open-source development during what the Ethereum Foundation has described as a “moderate tightening” phase. According to on-chain analytics firms Arkham and Lookonchain, about 9,000 ETH has been sold in tranches since early February, with an additional 3,500 ETH withdrawn over the past 48 hours.

Ethereum’s price has fallen approximately 18.55% in February, coinciding with Buterin’s token sales. Around 7,350 ETH reportedly remains, raising the possibility of continued selling pressure. In the past, movements of tokens by founders and the foundation have shaken market sentiment. For instance, after roughly 35,000 ETH (about $125 million at the time) was moved in May 2021, the price dropped 50% within weeks. Similarly, the transfer of 20,000 ETH (around $95 million) in November 2021 coincided with the market peak near $4,700.

With technical weakness and supply overhang converging, analysts say the probability of a drop below $1,500 is increasing. However, whether ETH can reclaim $2,085 is seen as the key turning point for its short-term direction.

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