Ethereum faces pressure from technical breakdown risks, co-founder Vitalik Buterin’s accelerated token sales, and persistent institutional outflows from spot ETFs.
The Ethereum network is confronting significant headwinds, with its price testing a crucial technical threshold. A combination of substantial token sales by a co-founder, corrected staking data, and persistent outflows from investment products is contributing to the downward pressure on the world’s second-largest cryptocurrency.
Market technicians are closely watching the $1,800 to $1,820 zone, a critical support area for Ethereum’s price. As of February 24, 2026, ETH was trading at $1,842, hovering precariously above this level. Analysts warn that a sustained breach below this support band could trigger a steeper sell-off, potentially setting a course toward the $1,500 mark. The broader cryptocurrency market’s current bearish sentiment is further complicating any potential recovery.
Adding to the market’s concerns is the accelerated selling activity from Ethereum co-founder Vitalik Buterin. As part of a previously announced strategy to fund development projects and open-source initiatives, Buterin has significantly increased his disposal of ETH tokens. Over just the past two days, he sold 1,869 ETH, worth approximately $3.67 million.
This brings his total sales for February to more than 8,800 ETH, equivalent to roughly $16 million. The planned liquidation involves a total of 16,384 ETH. Despite these transactions, Buterin’s remaining holdings are substantial. According to data from analytics firm Arkham, he retains over 224,000 ETH, valued at around $429 million at current prices. The Ethereum Foundation has characterized this financial approach as one of “mild austerity.”
The institutional investment landscape for Ethereum continues to show signs of strain. Spot Ethereum Exchange-Traded Funds (ETFs) recorded net outflows of $123 million last week, marking the fifth consecutive week of capital withdrawals. Data from SoSoValue indicates this sustained series of redemptions is pulling considerable capital from these regulated investment vehicles.
Should investors sell immediately? Or is it worth buying Ethereum?
Recent reports suggesting that over 50% of Ethereum’s total supply was being staked have been corrected by analysts. The figure of 50.18% was identified as misleading, as it represented cumulative deposits into the staking contract since its inception without accounting for withdrawals.
The actual, active staking ratio is notably lower. Research from CoinShares indicates that approximately 37 million ETH are currently staked on the network, representing about 30.8% of the circulating supply. This accurate metric is vital for assessing network security and economic participation.
Concurrently, the effects of the Dencun upgrade are becoming evident in the network’s economics. By reducing transaction fees on Layer-2 networks, the upgrade has decreased the burn rate on the Ethereum mainnet, thereby lessening the deflationary pressure on ETH. In this environment, staking yields, which currently range between 3.5% and 4.2% APY, are gaining increased attention as a potential value driver for the asset.
Fresh Ethereum information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
