Ethereum’s native token, Ether (ETH), is on the right track to check and potentially break the $1,500 support level in the approaching days.
Key Takeaways:
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Ethereum has entered the breakdown phase of its prevailing bearish continuation pattern.
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ETH price could fall below $1,500 by early March because of founder selling.
ETH bear pennant breakdown targets $1,475
On Monday, ETH price fell greater than 5.60% to around $1,850, driven by a general de-risking sentiment sparked by tariff-related jitters.
In doing so, the biggest altcoin broke the lower trendline of its prevailing bear pennant pattern, with increasing volumes indicating that traders were confident within the bearish move.
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A bear pennant breakdown often resolves when the value falls across the peak of the previous downtrend.
If the identical principle were applied to the ETH charts, the downside goal would rise to $1,475 by late February or early March, near the psychological support level of $1,500.
Bulls will due to this fact must reclaim the pennant's lower trendline as support, followed by a sustained rally above the 20-day exponential moving average (20-day EMA, the green line) at $2,085, which could invalidate the bearish outlook.
Vitalik Buterin is more likely to sell more ETH soon
Ethereum co-founder Vitalik Buterin's planned ETH sales didn’t help bulls regain their footing in February.
On January 30, Buterin said he would withdraw and sell 16,384 ETH through his Kanro company to fund ecosystem work, open source software and other long-term initiatives during a “mild austerity period” by the Ethereum Foundation.
Since the start of February, on-chain tracker Arkham Intelligence has reported about 9,000 ETH sold in batches, with the pace picking up again within the last 48 hours following a 3,500 ETH withdrawal from Aave.
Vitalik Buterin is “selling ETH faster again,” on-chain monitoring resource Lookonchain said on Monday.
Source: X
The price of Ethereum has fallen 18.55% to date in February, according to Buterin's ETH distribution. The overhang could grow if it liquidates the remaining roughly 7,350 ETH.
The story shows how the offering related to the founder, including the transfer of Ethereum Foundation treasury, can reinforce bearish sentiment amongst traders.
For example, the 35,000 ETH transfers in May 2021 (roughly $125 million on the time) were preceded by a 50% drop in ETH price inside just a few weeks.
The foundation later transferred an extra 20,000 ETH ($95 million) to Kraken on November 11, 2021, a move that retrospectively coincided with Ether's price peaking at nearly $4,700 before the following decline.
Such conditions further increase ETH’s possibilities of reaching its pennant goal below $1,500 in the approaching days.
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