As is known, Ethereum founder Vitalik Buterin has been selling $ETH for some time now.
According to recent data, Buterin sold a total of 17,000 $ETH in February, which is equivalent to approximately $34 million at current prices. This selling pressure coincides with significant outflows from Ethereum ETFs, where approximately 563,600 $ETH (approximately $1.13 billion) has been sold in the last five weeks.
As a result, the $ETH price reacted to this and lost approximately 49% of its value last month, falling from around $3,400 in mid-January to $1,800.
However, Buterin may have sold these $ETH at the bottom.
Crypto analyst Ali Martinez said Ethereum founder Vitalik Buterin may have sold tens of millions of dollars worth of $ETH near the market bottom.
Martinez noted that Buterin sold $ETH at a time when its MVRV (Market Value/Realized Value) ratio was 0.78.
At this point, Martinez, referring to historical data, noted that Ethereum typically forms macro bottoms when its MVRV ratio falls below 0.8.
“MVRV is around 0.78, which technically places Ethereum in a position that was previously a long-term accumulation zone.”
Although $ETH is currently undervalued based on on-chain metrics and MVRV is signaling a bottom, the analyst warned that further price drops are possible if selling pressure continues.
At this point, the analyst identified $1,800, $1,584, $1,238, and $1,089 as key support levels.
Finally, the analyst stated that while on-chain data shows Ethereum entering a historically attractive accumulation zone, ongoing ETF outflows and Buterin’s sell-off are creating short-term selling pressure.
The analyst stated, “If history repeats itself, accumulation below $1,800, particularly at the $1,584, $1,238, and $1,089 levels, could provide a strong long-term position. However, volatility is likely to continue before a definitive bottom is formed.”
*This is not investment advice.
