Ethereum traded around $2,079 as of writing, posting a 7.8% drop over the past 24 hours after reports that co-founder Vitalik Buterin sold a sizable amount of ETH. Market participants tracked the move closely, given Buterin’s influence and Ethereum’s role as the second-largest crypto by market cap.
The price action showed the instability, raising an obvious question. Where do next?
Details of the Reported ETH Sales
Watcher.Guru reported on X that Vitalik Buterin sold 2,972 ETH worth approximately $6.69 million over the past three days. The transactions appeared to originate from wallets linked to Buterin, though official confirmation from him or the Ethereum Foundation did not surface.
Analysts who reviewed on-chain data noted that the total volume stayed below 3,000 ETH, a relatively small amount compared with Ethereum’s daily trading volumes.
Philanthropy Ties Shape Market Interpretation
Reports tied the ETH sales to Buterin’s philanthropic activities through the Kanro entity. Historical transaction patterns show that Buterin has frequently sold ETH to fund charitable causes.
Observers pointed out that the structure and timing of the transfers aligned with those past actions. This context shaped market interpretation and helped explain why prices showed little reaction despite the headline value of the sale.
Ethereum’s large market cap absorbed the reported sales with ease. ETH price movements remained narrow following the disclosures, signaling strong liquidity and deep order books.
Analysts emphasized that individual sales of this size rarely move the market unless they trigger broader sentiment shifts. In this case, traders appeared focused on macro conditions rather than wallet-level activity.
Community Reaction Remains Mixed
Despite the muted price response, some community members voiced frustration as ETH hovered near recent lows. Others viewed the transaction as routine and consistent with Buterin’s long-standing approach to funding philanthropy.
Market analysts largely echoed that view, describing the sales as operational rather than speculative. Ethereum’s ecosystem showed no signs of stress following the reports.
From a technical perspective, Ethereum continues to drift toward a well-defined liquidity zone. Data from Coinglass noted that significant liquidity sits between $1,800 and $2,000, an area that also aligns with trend-based liquidation levels.
Source: Coinglass via X
ETH recently traded near $2,084, placing price action just above that zone. Traders now monitor whether price revisits this range or builds support above current levels.
Liquidity zones often attract heightened activity as traders position around concentrated orders. If ETH moves lower, the $1,800–$2,000 range could see increased participation from both buyers and sellers.
If price holds above that area, market attention may shift toward higher resistance levels. For now, Ethereum continues to trade with resilience, even as headlines highlight high-profile wallet movements.
Market Watches for Follow-Through
Ethereum’s reaction to the reported sales highlighted existing downside pressure rather than resilience. ETH dropped about 8% as of writing, showing that broader market conditions outweighed the market’s ability to absorb high-profile transactions.
The decline pushes price closer to key liquidity levels, shifting trader focus toward downside support rather than upside continuation. With ETH now trading near zones where buying and liquidation activity tends to cluster, market participants are watching closely for confirmation of either stabilization or further downside as liquidity reshapes short-term price action.
Source: https://coinpaper.com/14324/ethereum-falls-7-8-after-vitalik-buterin-s-reported-eth-sales-traders-watch-key-1-800-2-000-liquidity-zone
