Ethereum is back under pressure after a fresh wave of asset sales by its co-founder adds to an already fragile market mood.

Over the past two days, Vitalik Buterin offloaded a portion of his holdings, triggering renewed discussion about liquidity, sentiment, and the broader trajectory of the second-largest cryptocurrency.

While the sales represent only a small fraction of his overall portfolio, the timing, alongside a noticeable price decline, has put traders on alert and reignited debates about whether founder-linked transactions still carry outsized psychological impact on the market.

The price of Ether slid nearly 3% within a 48-hour window, briefly touching a 20-day low around $1,844 early Monday before stabilizing slightly. The drop pushed the asset below the $1,900 threshold, a level many traders had been watching as a near-term support zone.

Although short-term volatility is common, the move extends a broader downtrend that began after Ethereum peaked above $4,900 in August last year. Since then, macro conditions, profit-taking cycles, and uneven network activity have all contributed to a gradual cooling of bullish momentum.

Market watchers note that price movements tied to high-profile wallet activity often amplify volatility beyond what fundamentals alone might justify. Even when the actual volume sold is relatively modest compared with circulating supply, the narrative effect can shape sentiment quickly.

Data circulating onchain indicates that Buterin sold 1,869 ETH, worth roughly $3.67 million, over a two-day period. The transactions came after he withdrew about 3,500 ETH from Aave, a decentralized lending platform frequently used for liquidity management.

Despite the sales, his remaining holdings remain substantial. Estimates place his balance above 224,000 ETH, valued at roughly $429 million at recent prices, underscoring that the transactions represent a small reallocation rather than a major portfolio shift.

Still, traders often scrutinize such moves for signals. Founder-linked wallets are sometimes interpreted as barometers of internal confidence, even though many sales are tied to funding, grants, or operational needs rather than market outlook.

Ethereum slips below $1,900 as Vitalik Buterin sells $3.67M in assets@VitalikButerin has sold 1,869 $ETH, worth $3.67M, over two days, having withdrawn 3,500 $ETH from Aave. Still, Buterin held over 224,000 $ETH, worth $429M

Ether's price has declined nearly 3% over the past… pic.twitter.com/nqCT6fYlDZ

— TOP 7 ICO | Crypto Analytics & Alpha (@top7ico) February 23, 2026

The latest transactions follow a late-January announcement that Buterin would liquidate part of his holdings to finance ecosystem development, open-source software, and other initiatives. The plan included withdrawing and selling a total of 16,384 ETH over time.

These steps coincide with a period of tighter financial discipline at the Ethereum Foundation, which has described its current stance as a “mild austerity” phase. The goal is to ensure long-term sustainability while continuing to fund research, infrastructure, and community projects that support the network’s growth.

Historically, such treasury or founder sales have not always translated into prolonged price declines. However, the optics can influence short-term trading behavior, especially when markets are already trending downward.

Market participants are particularly attentive because previous founder-linked sales have coincided with sharper corrections. During one past episode, Ethereum’s price reportedly dropped more than 20% following notable sales activity, reinforcing a narrative that large insider transactions can precede volatility spikes.

Since early February, Buterin is believed to have sold more than 8,000 ETH in total, a cumulative figure that has kept the conversation active across trading desks and social channels. While the market impact of each individual sale may be limited, the cumulative effect, combined with macro uncertainty, can reinforce bearish sentiment in the short term.

At the same time, analysts caution against drawing direct causal conclusions. Crypto markets are influenced by a wide mix of factors, including liquidity cycles, derivatives positioning, and broader risk appetite across global markets.

For now, Ethereum remains in a consolidation phase, with traders watching whether the asset can reclaim the $1,900–$2,000 range to restore short-term bullish momentum. A sustained move above that zone could signal renewed confidence, while continued weakness might invite further testing of lower support levels.

Longer term, the network’s fundamentals, including developer activity, layer-2 growth, and ongoing upgrades, continue to shape the broader investment thesis. Founder sales tied to ecosystem funding may ultimately be viewed as neutral or even constructive if they translate into tangible improvements across infrastructure and adoption.

Still, sentiment remains a powerful force in crypto markets. The combination of visible onchain transactions and price softness has reminded traders how closely narratives and market structure are intertwined, particularly for assets with highly transparent supply dynamics.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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