Vitalik Buterin Keeps Selling ETH Amid Privacy and Foundation Funding Initiatives

Ethereum co-founder Vitalik Buterin has continued selling Ethereum in February 2026, with recent transactions totaling over 8,800 ETH, valued at approximately $18.45 million. The sales appear to be part of a planned allocation to support long-term initiatives, including privacy-focused projects and operational funding for the Ethereum Foundation. Buterin's attributed wallets have seen a total reduction of 17,000 ETH in the past month, highlighting a deliberate strategy to minimize market impact while addressing his public commitments.

The sales coincide with a broader bearish trend in Ethereum's price, which has fallen nearly 36% over the past month. ETH is currently trading below key technical levels, including the $1,900 mark, with indicators like the RSI and MACD reinforcing the downward momentum. While Buterin remains a major ETH holder with over 224,000 ETH in his accounts, the ongoing selling has raised concerns about short-term market pressure.

Recent activity shows Vitalik routing his sales through platforms like CoW Protocol, a method intended to reduce the visibility of large transactions and mitigate price swings. The strategy aligns with his broader goal of supporting open-source and self-sovereign technologies without exacerbating market volatility.

Why Did This Happen?

Buterin's sales are driven by a combination of personal and institutional goals. He has earmarked $45 million in ETH to support privacy initiatives, including open-hardware and secure-software systems. Additionally, the Ethereum Foundation has launched a 'mild austerity' initiative to ensure long-term financial sustainability, with plans to gradually utilize 16,384 ETH over the next few years.

The foundation has also begun staking 70,000 ETH to generate yield, reducing the need for direct ETH sales while supporting its operational budget. This dual approach—selling a portion of holdings and generating income from staking—aims to minimize market disruption while securing the foundation's financial independence.

How Did Markets React?

Ethereum's price has remained under pressure as both Ethereum Foundation and individual sales have added to bearish sentiment. Over the same period, U.S. spot Ethereum ETFs have seen significant outflows, with assets dropping from $18.6 billion to $11.9 billion since early January.

Whale activity has also declined, with large Ethereum transactions averaging smaller sizes and fewer trades compared to January 2026. Despite this, accumulation addresses have steadily added to their holdings, increasing their ETH stock by 2.5 million units in February alone. This suggests ongoing underlying demand even as prices fall.

What Are Analysts Watching Next?

Analysts are closely monitoring both Ethereum's price behavior and broader macroeconomic factors. Ethereum has been trading below its 50-day, 100-day, and 200-day EMAs, with technical indicators indicating bearish momentum. Key support levels, such as $1,740, have been identified as potential turning points for the asset.

At the institutional level, BlackRock has filed for a new Ethereum staking ETF, the iShares Staked Ethereum Trust (ETHB), which will stake up to 95% of its holdings and distribute 82% of the staking rewards to investors. If approved, the ETF could shift Ethereum from a passive asset to an income-generating product, potentially altering investor behavior and market dynamics.

Overall, the interplay between high-profile selling, ETF outflows, and macroeconomic uncertainty continues to shape Ethereum's price trajectory. While the immediate outlook remains bearish, some analysts suggest that further declines could present buying opportunities for long-term investors.