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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.

Discover: The best meme coins in the world right now

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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.

Discover: The next crypto to explode

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

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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