Ethereum is having a rough stretch, and the latest price data is not doing anyone’s portfolio any favors. ETH dropped to $1,861 this week, extending what has now become a pretty grinding multi-week sell-off. The Ethereum price drop from Vitalik selling ETH has added fresh fuel to an already shaky market, and traders are watching the $1,800 level like hawks right now.
Two things are hitting ETH at the same time. Macro conditions remain messy globally, with risk assets under pressure across the board. And then there is Vitalik Buterin, whose wallet has been quietly busy again, according to on-chain data.
Vitalik’s Wallet Moved Again, and Traders Noticed
Buterin shifted roughly 1,869 ETH over the past 48 hours, valued at around $3.67 million at the time. ETH was trading near $1,988 when those transfers started showing up on-chain. It is sitting at $1,861 now. Draw your own conclusions on the timing.
Now, before the pitchforks come out, it is worth understanding what usually sits behind these transfers. Buterin has publicly funded Ethereum ecosystem grants, open-source research, and various development initiatives through wallet moves like this. Earlier this year he laid out a plan to sell from an initial 16,384 ETH allocation to keep long-term foundation projects funded as budget pressures grew.
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That context is real and fair. But the market does not always wait around for context. This is also not a one-off. Back in February, on-chain data showed Buterin moving 6,958 ETH worth roughly $14.78 million while Ether was already falling. When a co-founder’s wallet is active during a downtrend, traders notice. And right now, sentiment is already fragile enough that any extra sell pressure is hitting harder than it otherwise might.
The Broader Market Is Not Offering Much Help Either
The total crypto market cap has shed over 3% recently, dropping to around $2.23 trillion. The fear and greed index is sitting deep in fear territory, around the 15% mark, which tells you how nervous the general market mood is.
Macro factors are doing some of the heavy lifting here too. Global tariff uncertainty is keeping institutional risk appetite suppressed, and geopolitical tensions between the U.S. and Iran are adding another layer of unease. The GENIUS Act, which many in the crypto industry had hoped would bring regulatory clarity, is also looking like it may be further delayed than expected. None of that is the kind of backdrop that gets buyers excited.
Also Read: Vitalik Drops Radical Ethereum Plan. Could This Break the Current L2 Ecosystem?
What the Chart Is Actually Telling You
The technical picture on the Ethereum daily chart had actually been relatively readable up until now. ETH had been grinding sideways above $1,900 for a couple of weeks, bleeding out slowly with each failed bounce printing a lower high. Classic descending triangle behavior. The floor kept holding, just barely, and it felt like eventually something had to give.
That support gave way. The breakdown below $1,900 flips the pattern from a waiting game into a confirmed bearish continuation. The RSI has not yet shown any meaningful bullish divergence to suggest buyers are stepping in with conviction. It is still pointing south.
But here is what is really worth paying attention to: the volume on those recent red candles is noticeably heavier than on any of the green ones before them. That kind of imbalance does not come from retail panic alone. When you see outsized volume accompanying down moves while up moves stay relatively quiet, it typically points to someone with serious holdings distributing into any bounce rather than holding through the weakness. The evidence is in the candles.
Watch $1,800 closely. That is the next real floor, and if it goes, there is not much standing between current prices and the $1,650 to $1,750 range. A full breakdown toward the $1,200 zone is not the base case right now, but it was a major accumulation area back in 2023, and it would come back into play if sellers keep pushing.
On the other side, reclaiming $1,900 with a proper daily close would be the first sign that bulls are trying to claw something back. A move toward $2,100 becomes plausible from there, but that feels like a lot to ask given where momentum sits right now.
Also Read: Can Ethereum Survive Without Vitalik? Founder’s 7-Step Survival Plan
Why is Ethereum dropping so hard right now?
It is a combination of things landing at once. Vitalik Buterin sold nearly 1,869 ETH this week, which is always going to move sentiment regardless of the reason behind it. Layered on top of that you have weak macro conditions, tariff fears, and a technical breakdown below key support at $1,900. None of those things are helping.
Is Vitalik Buterin dumping all his ETH?
Not exactly. He outlined a structured plan earlier this year to sell from a 16,384 ETH allocation to fund ongoing Ethereum Foundation projects and ecosystem grants. The sales are tied to operational funding needs, not a full exit. That said, the market tends to react to the optics first and the details second.
Where is the next major support for ETH price?
$1,800 is the number everyone is watching right now. Lose that on volume, and the $1,650 to $1,750 range comes into play pretty quickly. The 2023 lows near $1,200 are out there as a worst-case reference point, but we would need a lot more selling to get anywhere close to that.
Should I buy ETH at these levels?
That is genuinely not something this article can or should answer for you. The technical setup is weak right now, and volume suggests distribution rather than accumulation. Do your own research, understand your risk tolerance, and if needed, talk to a financial advisor before making any moves.
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Disclaimer:
Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.
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