Is Vitalik Bailing? Ethereum Founder Sheds $18M in ETH as Price Teeters on $1,800
The crypto community is talking after on-chain data showed Vitalik Buterin, Ethereum’s co-founder, sold nearly 8,800 ETH...
Quick overview
- Vitalik Buterin sold nearly 8,800 ETH in February 2026, raising about $18.45 million, which has sparked discussions in the crypto community.
- Despite these sales, Buterin still holds over 224,105 ETH, valued at more than $430 million, indicating that the sales represent less than 4% of his total holdings.
- The sales are part of a strategic plan to fund long-term projects during a period of 'mild austerity' announced by Buterin, aimed at supporting the Ethereum ecosystem.
- Ethereum is currently facing bearish market conditions, with a recent price drop and technical analysts warning of potential further declines if it falls below the $1,800 support level.
The crypto community is talking after on-chain data showed Vitalik Buterin, Ethereum’s co-founder, sold nearly 8,800 ETH in February 2026. His latest sale was about $7.3 million in just three days, leaving investors wondering if this is a normal adjustment or a sign of trouble for Ethereum.
The $18 Million Sell-Off: Breaking Down the Numbers
According to blockchain analytics firm Lookonchain, the wallet labeled vitalik.eth has been remarkably active this month. While the headlines focus on the latest 3,788.57 ETH transfer, the broader picture is even more significant.
- Total February Sales: Over 8,800 ETH (approx. $18.45 million).
- Average Exit Price: About $2,077 per ETH earlier in the month, but this dropped as the market fell.
- Current Holdings: Even after these sales, Arkham Intelligence says Buterin still holds 224,105 ETH, worth over $430 million.
Although large founder sales can cause concern, these sales are less than 4% of his known holdings.
vitalik.eth(@VitalikButerin) continues to sell $ETH.
Over the past 3 days, he has sold 3,788.57 $ETH($7.3M).https://t.co/pMvkZHjIyDhttps://t.co/yQHZT3jRtA pic.twitter.com/wDreT4ysOW
— Lookonchain (@lookonchain) February 24, 2026
Why Now? Philanthropy vs. “Mild Austerity”
Unlike Bitcoin’s mysterious Satoshi, Vitalik Buterin is open about his actions. In late January 2026, he announced that the Ethereum Foundation would start a period of “mild austerity.” Most of the recent sales are part of a plan to use 16,384 ETH for long-term projects, such as:
- Open-Source Hardware: Funding the decentralization of physical infrastructure.
- Privacy Research: Strengthening ZK-proofs and secure wallet technologies.
- Ecosystem Grants: Supporting developers during the current “crypto winter.”
“These moves are strategic, not emotional,” says one on-chain analyst. “He is basically ‘taxing’ his own holdings to help the network get through the current bear market.”
Market Impact: Ethereum at a Technical Crossroads
The timing of these sales is sensitive. Ethereum is facing several bearish factors at once:
- Price Correction: ETH has dropped almost 8% in the past week and is now close to the $1,800 support level.
- Macro Pressure: New global trade tariffs, which have increased from 10% to 15%, have made investors more cautious about assets like crypto.
- The “Fractal” Fear: Technical analysts see a “bear pennant” pattern. If ETH falls below $1,800, some warn it could drop to $1,500 or even $1,475.
Professional Take: Signal or Noise?
For seasoned traders, founder sales are a double-edged sword. On one hand, they increase the “circulating supply” at a time when demand is tepid. On the other, the fact that these sales are being executed via CoW Swap (an MEV-resistant protocol) shows an intentional effort to minimize market impact.
Key Takeaways for Investors:
- Sentiment vs. Reality: The news of Vitalik selling often affects people’s feelings more than it actually affects the market.
- Staking Slowdown: Besides the sales, fewer people are staking Ethereum, which suggests investors now prefer having cash on hand instead of locking up funds for long-term returns.
- The Long Game: Ethereum’s roadmap is still focused on the “Glamsterdam” and “Hegota” upgrades planned for later this year, which are meant to fix L1 scaling problems.
What’s Your Move?
As Ethereum tries to stay above $1,800, the market is watching closely. Will Vitalik’s sales push the price down further, or is this a good chance for long-term believers to buy in?
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