Ether Price Update

Ethereum’s native token, Ether, is approaching a critical moment, potentially testing and breaking through the $1,500 support level in the upcoming days.

Key Points:

• Ethereum has entered a bearish continuation pattern, suggesting a collapse is underway.

• There’s a chance the ETH price could dip below $1,500 by early March, largely influenced by selling from its founder.

Target for the ETH Bear Pennant Breakdown: $1,475

On Monday, ETH’s price dropped over 5.60%, landing at around $1,850 due to a general risk aversion linked to tariff issues. This decline broke through the lower trendline of a typical bearish pennant pattern, and the spike in trading volume signifies strong conviction among traders about this downward movement.

Usually, a bearish pennant breakdown indicates a price drop equal to the height of the previous downtrend. Looking at the ETH chart, this could project a price target close to $1,475 by late February or early March—right near that psychological support of $1,500.

For a recovery, bulls would really need to reclaim that lower pennant trendline as support, followed by maintaining a rally above the 20-day exponential moving average at around $2,085, which could potentially negate the bearish forecast.

Vitalik Buterin’s Planned ETH Sales

The anticipated sale of ETH by Vitalik Buterin, Ethereum’s co-founder, hasn’t helped the bulls revive their momentum this month. On January 30, he revealed his plan to sell 16,384 ETH through his Kanro entity to fund various ecosystem activities and open-source projects during a period of “mild austerity” for the Ethereum Foundation.

Since early February, tracking service Arcam Intelligence noted bulk sales of about 9,000 ETH, with a recent increase in activity following a withdrawal of 3,500 ETH from Aave.

On-chain resource LookunChain indicated Buterin mentioned the acceleration of ETH sales recently.

So far in February, Ethereum’s price has plummeted by 18.55%, likely coinciding with Buterin’s distribution of ETH. If he proceeds to sell the remaining 7,350 ETH, the situation might worsen.

Historically, founder-associated sales, like those from the Ethereum Foundation, have exacerbated bearish sentiment among investors. For instance, a transfer of 35,000 ETH in May 2021—worth about $125 million—led to a staggering 50% drop in price within weeks.

Similarly, another transfer of 20,000 ETH ($95 million) occurred around November 11, 2021, which coincided with Ether reaching near $4,700 before a notable downturn.

This context seems to heighten the likelihood that ETH may dip below the pennant target of $1,500 in the near future.