Ethereum Pressured as Founder Sales Add to Bearish Mix
By Martin Lam
Market Overview
Ethereum (ETH) prices are currently facing significant pressure, with sellers dominating the market. The price of ETHUSD has recently dropped to $1,853, finding support at the lows of $1,749. Analysts suggest that if the downward trend continues, the $1,388 level may serve as a critical support point.
Vitalik Buterin's Sales Impact
Vitalik Buterin, co-founder of Ethereum, has announced plans to sell 16,384 ETH to fund various ecosystem projects and open-source software initiatives during what he describes as a "mild austerity" phase. This announcement, made on January 30, has not positively influenced the price of ETH in the current bearish market.
Since early February, Arkham Intelligence has reported that approximately 9,000 ETH has been sold in batches, with a notable increase in sales activity this week, including a withdrawal of 3,500 ETH. Lookonchain, an on-chain analytics resource, has indicated that Buterin is accelerating his sales of ETH.
Corporate Selling Trends
In addition to Buterin's sales, corporate treasury companies holding Bitcoin are also experiencing a rare bearish trend, with a three-week streak of selling. This is the longest such streak observed in the brief history of corporate Bitcoin treasury holdings. Market analyst Nic Puckrin from Coin Bureau warns that continued corporate selling could drive Bitcoin prices toward new bear market lows.
While the top 20 corporate Bitcoin holders have not reported recent sales, smaller companies like Cango Inc., which is the 27th largest holder, have significantly reduced their Bitcoin holdings by over 54% in the past two weeks.
Investment Product Outflows
Crypto investment products have seen substantial outflows, totaling $288 million last week, marking a five-week losing streak. This is the longest period of outflows since the launch of U.S. spot Bitcoin exchange-traded funds in January 2024.