ETH price crash: Ethereum continues to struggle as the crypto market’s downturn intensifies. On Thursday, ETH fell below $2,000, its lowest level since May last year, marking a drop of more than 50% from its all-time high. This marks the third consecutive week of losses for the token.
Part of the selling pressure comes from Ethereum’s founder, Vitalik Buterin. Data from Look OnChain showed he recently sold 2,961 ETH, worth $6.6 million, as per a Coingape report.
In the past few weeks, he also sold 16,384 ETH, explaining that the proceeds would go toward funding privacy projects on the network. Despite these sales, Buterin remains one of Ethereum’s largest holders, with 227,000 ETH valued at over $470 million, signaling his continued belief in the coin’s long-term potential.
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Buterin has also remained bullish on Ethereum’s prospects. In a recent statement, he suggested that the network is performing so well that layer-2 solutions could eventually become unnecessary, as per the Coingape report.
Meanwhile, broader investor sentiment is turning cautious. Spot Ethereum ETFs have lost over $68 million in February, marking three months of consecutive outflows.
Since November, investors have sold more than $2.5 billion in ETH, though the funds still hold $12.7 billion in assets overall. Leveraged traders are also feeling the pain, with Ethereum bulls losing over $237 million in liquidations over the past 24 hours.
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Technically, the charts point to further weakness. ETH has dropped below a key support at $2,125, invalidating an inverted head-and-shoulders pattern that once suggested a potential reversal.
Indicators like the RSI at 31 and the Stochastic Oscillator in oversold territory signal more downside may be ahead. Analysts see $1,500 as the next significant level, while a weekly close above $2,124 could reverse the bearish outlook and confirm a possible rebound, as per the Coingape report.
Why is Ethereum dropping?
ETH has fallen due to a broader crypto market downturn and significant sales by founder Vitalik Buterin.
How much ETH has Ethereum’s founder sold?
He sold 2,961 ETH recently, and 16,384 ETH in the past few weeks.
