- vitalik buterin has sold more than 7,380 ETH since February 2, totaling about $15.5 million, with additional sales on February 22
- Ethereum has dropped 30% over the past month to below $2,000, while Santiment data shows a 14.3% MVRV deficit signaling technical undervaluation
Ethereum co-founder vitalik buterin has intensified his sales of ETH as the cryptocurrency faces a sharp monthly decline. Recent on-chain data shows the developer converting large portions of his holdings into cash at a time when Ethereum is trading near key psychological levels and flashing technical oversold signals, adding a new layer of scrutiny to his financial moves and their timing.
Vitalik Buterin’s recent ETH withdrawals and sales
On February 22, blockchain analytics account Lookonchain reported that vitalik buterin pulled 3,500 ETH from the decentralized finance protocol Aave. The withdrawal, worth about $6.95 million at the time, was followed by rapid selling activity. Within just a few hours, 571 ETH from that batch had already been sold, generating approximately $1.13 million.
These trades add to a broader pattern that has unfolded since early February. From February 2 onward, buterin has disposed of more than 7,380 ETH, receiving around $15.5 million in total proceeds at an average price of $2,100 per token.
When combined with the latest transactions, this means that in less than one month he has converted more than half of a previously identified reserve into cash.
The size and pace of these disposals are drawing attention, not only because of their market impact but also because they involve the most recognizable public figure associated with Ethereum. Each move is being tracked in near real time by on-chain monitoring services, which relay transaction details to traders and analysts attempting to interpret his intent and its implications for ETH’s short-term direction.
Austerity plans versus rapid execution
The acceleration of sales contrasts sharply with how vitalik buterin described his plans only weeks earlier. On January 30, the 32-year-old announced that the Ethereum Foundation was shifting into what he called a phase of “mild austerity” in order to deliver on its longer-term objectives. As part of that strategy, he withdrew 16,384 ETH to support the organization, explaining that these tokens would be allocated gradually over “the next few years.”
Market observers are now noting that the actual pace of liquidation has been far from gradual. With more than half of that austerity-related allocation already sold in under a month, the original timeline appears compressed in practice, even though the stated rationale remains organizational support and strategic deployment.
This divergence between the language of slow, measured spending and the reality of concentrated selling is shaping how traders interpret his activity. To some, the volume and speed imply a sense of urgency that runs counter to the idea of a long, carefully staged rollout. Others may see it simply as front-loaded funding for foundation operations, but the opacity around the exact uses of proceeds leaves room for speculation.
Market reaction, price pressure, and oversold signals
The timing of vitalik buterin’s sales coincides with a significant decline in Ethereum’s price. Over the past month, ETH has fallen by 30% and is now trading just under the $2,000 mark, a level many traders view as an important psychological support. In such a context, noticeable selling by a founding figure can take on added symbolic weight.
Institutional investors and other large market participants often interpret major founder liquidations during steep drawdowns as a negative signal. Even if the stated purposes are administrative or operational, heavy selling from a core insider can be perceived as a lack of confidence in near-term price prospects. That perception risk is elevated when transactions are sizable and closely spaced, as they have been in this case.
Yet, at the same time, some analytics firms argue that the current price level reflects substantial undervaluation based on on-chain metrics. Data provider Santiment highlights Ethereum’s 30-day Market Value to Realized Value (MVRV) ratio, which is used to gauge whether holders are, on average, in profit or loss. According to its analysis, ETH’s MVRV stands at a 14.3% deficit, suggesting that the typical holder is currently underwater and that the asset may be oversold from a technical perspective.
In Santiment’s comparative view, Ethereum appears more heavily discounted than several other major cryptocurrencies over the last month:
- Bitcoin: 6.9% undervaluation
- Chainlink: 5.1% undervaluation
- XRP: 4.1% undervaluation
- Cardano: 2% undervaluation
By this measure, Ethereum is the most deeply marked down among the group, even as one of its principal architects continues to reduce his exposure. That juxtaposition—founder selling into a statistically oversold market—adds complexity for traders weighing whether current prices reflect capitulation or an extended downtrend.
Conclusion
Vitalik buterin’s recent activity shows a rapid conversion of ETH into cash, in contrast with his earlier description of a multi-year austerity phase for the Ethereum Foundation. Since early February he has sold more than 7,380 ETH, and when including the latest withdrawals, over half of his designated reserve has been liquidated in under a month. These moves arrive as Ethereum’s price has dropped 30% in 30 days and sits just below $2,000, a moment when founder selling tends to be viewed as a bearish signal. However, on-chain metrics from Santiment portray ETH as notably undervalued, with an MVRV deficit of 14.3% that exceeds the discounts seen in Bitcoin, Chainlink, XRP, and Cardano. The combination of pronounced insider selling and strong technical oversold readings leaves the market weighing conflicting indicators as it assesses Ethereum’s near-term outlook.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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