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Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH

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Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH

Ethereum faces imminent risk of collapse to $1,475 after co-founder Vitalik Buterin executed a massive sell-off of nearly 9,000 ETH this week.

The high-profile wallet activity coincides with a broader technical breakdown, as the asset struggles to maintain support above $1,850 amidst rising sell volume and widespread market de-risking.

  • Vitalik Buterin sold roughly 9,000 ETH, leaving a supply overhang of over 7,350 ETH in the updated wallet balance.
  • Ethereum has officially entered a bear pennant breakdown, technically targeting a slide to $1,475 by early March.
  • The sell-off aligns with a broader market retreat, significantly threatening the psychological $1,500 support level.

Why Is Founder Selling Triggering Alarm?

The market’s sharp reaction stems from both the volume of the sale and historical precedent. Founder-led selling often acts as a bearish signal for retail traders, and previous sales by Buterin have preceded price declines of almost 23%.

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With roughly 7,350 ETH still remaining in the wallet, traders fear a continued supply overhang could suppress price action throughout the week.

This localized selling pressure compounds macro headwinds. Broad market sentiment has already shifted due to nervousness surrounding tariffs, which recently caused a de-risking event across major altcoins.

While long-term institutional holders like Consensys maintain significant treasuries, the immediate liquidity shock from a founder sale creates a tangible drag on short-term momentum.

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Technical Breakdown Points to $1,475 Bottom

The price action on the charts confirms the bearish narrative. Ethereum has entered the “breakdown phase” of a prevailing bear pennant pattern.

Early on Monday UTC, ETH dropped approximately 5.60% in 24 hours to hover near $1,850, slicing through the pennant’s lower trendline. Rising trading volumes accompanied the move, indicating strong conviction from sellers.

Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH
Source: TradingView

According to standard technical analysis principles, a bear pennant breakdown typically resolves when the price falls by a magnitude equal to the previous downtrend’s height.

Applying this to the current chart suggests a downside target of $1,475, precisely aligning with the psychological support zone of $1,500.

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While Buterin continues to advocate for protocol improvements, recently backing censorship resistance upgrades, these long-term fundamentals are currently overshadowed by chart weakness.

Can Ethereum Hold Critical Support?

The path forward depends heavily on whether buyers can defend the sub-$1,800 region.

If the bearish momentum continues, a test of $1,475 appears inevitable by early March. Conversely, invalidating this outlook requires a swift reclaim of the pennant’s lower trendline and a sustained close above the $2,000 resistance level.

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Despite the current gloom, some analysts, including those at Intellectia.ai, suggest that a 2026 return to $3,000 remains firmly feasible once this correction exhausts itself.

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The post Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH appeared first on Cryptonews.

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Chainlink’s 86% Correction May Be Over: Here’s Why $100 Could Be Next for LINK

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • LINK has corrected over 86% from its 2021 high near $53, now compressing inside a key demand block at $5.60–$7.50.
  • CryptoPatel identifies smart money absorption at macro support, with sell-side liquidity sweeps fully absorbed on the 3W chart.
  • Three upside price targets are mapped at $26.30, $52.22, and $100, representing up to 1,675% return from the demand zone.
  • The bullish setup is invalidated if LINK prints a three-weekly candle close below the critical support level of $4.76.

Chainlink’s native token, LINK, is currently priced around $8.30 after an extended period of price compression. Analyst CryptoPatel has released a high-timeframe technical forecast pointing toward a potential 10x move.

The setup is built on multi-year chart structure and accumulated demand at macro support. With volatility contracting sharply on the three-weekly chart, market participants are watching closely for a breakout confirmation.

LINK Accumulates Inside a Multi-Year Demand Block

LINK has been trading inside a descending channel on the three-weekly chart since its 2021 cycle high near $53. The token corrected more than 86% from that peak over the following years.

Price has since compressed into a demand block between $5.60 and $7.50. This zone is where CryptoPatel identifies strong smart money absorption taking place.

Multiple higher lows have formed within this demand block on the higher timeframe. Each successive low reflects buyers stepping in before price reaches prior lows.

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CryptoPatel noted that sell-side liquidity sweeps into this support region have been fully absorbed. That behavior points toward sustained accumulation rather than distribution at current levels.

The analyst’s tweet reads: “Fractal Structure Mirroring Previous Cycle Compression Before Breakout.” This observation draws a direct parallel to prior accumulation phases in LINK’s price history.

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Each of those phases was followed by a sharp directional expansion. The current setup carries a structurally similar pattern on the same timeframe.

Volatility on the three-weekly chart has contracted to an extreme degree, according to CryptoPatel. That level of compression typically precedes a larger expansion move in either direction.

Price is currently hovering near $8, described as range equilibrium within the analyst’s framework. The descending channel resistance from the 2021 all-time high remains the defining technical ceiling.

Key Price Levels That Could Trigger a Massive Upside Move

CryptoPatel has mapped out three upside targets: $26.30, $52.22, and $100. A move to the third target from current prices would represent a gain of approximately 1,110%.

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The projected total return from the high-timeframe demand zone sits between 1,232% and 1,675%. These targets align with liquidity pools resting above current price on the higher timeframe chart.

The critical confirmation signal for this setup is a three-weekly candle close above the descending trendline resistance. A simultaneous break of the range high on that timeframe would further strengthen the bullish case.

Until that close materializes, the channel resistance remains structurally intact. Traders following this setup are waiting for that specific trigger before adding exposure.

CryptoPatel’s bullish bias holds as long as LINK stays above $4.76 on the three-weekly timeframe. That level marks the lower boundary of the high-timeframe demand zone.

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A confirmed candle close below $4.76 would signal structural failure and open the door to further downside. That threshold functions as the hard invalidation point for the entire setup.

The analyst describes this as a high-timeframe, patience-based trade with asymmetric risk-to-reward. It is best suited for spot accumulation and long-term swing positioning, per the forecast.

No macroeconomic or fundamental variables are incorporated into the analysis. Traders are encouraged to conduct independent research before making any financial decisions.

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Backpack Offers 20% Equity to Token Stakers Ahead of IPO

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Backpack Offers 20% Equity to Token Stakers Ahead of IPO

Crypto trading platform Backpack Exchange on Monday announced that stakers of its forthcoming Backpack token will be able to earn equity in the exchange, as the company moves toward a potential initial public offering.

“Users that stake the Backpack token for at least a year will have the opportunity to exchange those tokens for equity at a fixed ratio—20% of the company today,” said Backpack CEO and founder Armani Ferrante in a post to X on Monday.

Speaking about the equity offering, Ferrante said many past token launches were built on “false promises” of utility — a pitfall he wanted to avoid. Instead, he said he wanted to offer users an alternative token structure showing long-term commitment.

“I came into crypto because I believe it’s going to change the world … But somewhere along the way, amidst the booms, the busts, the moonshots, the decentralization theater, and the straight up scams, we lost our way. I don’t know about you, but I’m just tired of false promises.”

Backpack’s offer would anchor the token’s value to company equity.

Backpack prioritizes users with tokenomics setup

Backpack first announced it would launch the Backpack token in a post on X earlier this month. 

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The tokens are intended to be unlocked in stages as the company moves toward a potential US IPO.

Backpack said 25% of the 1 million-token supply will be unlocked at the Token Generation Event, while the next 37.5% of the tokens will be released before the IPO, provided that Backpack reaches certain milestones, such as regulatory approvals and the launch of new products.