Vitalik Buterin Sold Over 8,800 ETH in February 2026 as Ethereum Price Falls

Ethereum co-founder Vitalik Buterin has accelerated the sale of Ethereum (ETH) in February 2026, offloading over 8,800 ETH. These sales are part of a broader strategy to allocate funds toward long-term initiatives within the Ethereum ecosystem. According to blockchain analytics, Buterin sold 6,958 ETH in early February and an additional 1,869 ETH in the past two days.

The timing of these sales coincides with a broader downtrend in the cryptocurrency market. ETH has fallen from a high of $2,360 to as low as $1,825 in different periods. At the time of reporting, Ethereum was trading at $1,868.04, down 5.35% in the last 24 hours.

Ethereum staking demand has also declined by nearly 50% in recent months. This drop indicates that more ETH is returning to the open market, increasing circulating supply and potentially contributing to downward price pressure. On-chain data shows that exchange inflows of Ethereum have risen sharply, with Binance reporting total inflows of $33.3 billion in the past 30 days.

Why Did This Happen?

Buterin disclosed his intent to sell 16,384 ETH for long-term initiatives. This strategy, first announced in late January, involves methodical selling through over-the-counter desks or structured limit orders to minimize market disruption according to reports. The funds from these sales are expected to support protocol development, academic research, decentralized applications, and security initiatives.

The Ethereum co-founder has emphasized transparency in the process, providing market participants with clear expectations regarding supply dynamics. This approach aims to reduce uncertainty and prevent panic in the market.

Market reactions have been mixed. While the Ethereum network’s health metrics, including total value locked (TVL) in decentralized finance (DeFi) and non-fungible token (NFT) trading volume, have not shown a negative correlation with Buterin’s sales, the broader market remains fragile according to analysis.

Analysts suggest that increased inflows of Ethereum onto exchanges, such as Binance, indicate either strategic repositioning or anticipation of higher trading activity. However, these inflows also signal a sensitive phase in the market, with elevated liquidity potentially contributing to selling pressure.

What Are Analysts Watching Next?

The decline in Ethereum staking demand has added to bearish sentiment. With more ETH returning to the open market, analysts are monitoring how this liquidity is being utilized. On-chain data shows a significant portion of Ethereum supply is concentrated between $2,020 and $2,070, suggesting that any attempt to reclaim these levels could face increased resistance.

Market participants are also watching for any signs of stabilization in Ethereum’s price action. If ETH breaks below the $1,900 level, it could face further declines toward the $1,750–$1,800 support zone.

Ethereum co-founder Vitalik Buterin’s strategic divestment, combined with broader market dynamics, has created a complex environment for investors. Analysts will continue to monitor staking demand, exchange inflows, and whale activity for further clues about Ethereum’s near-term trajectory.