Ethereum fell more than 5.60% on Monday to trade near $1,850, breaking below a critical technical support level amid a broader market retreat triggered by new tariff concerns.
The breach of the lower trendline of a “bear pennant” pattern signals a potential continuation of the current downtrend, according to technical analysts. High trading volumes accompanied the move, suggesting strong seller conviction as the asset targets a projected floor of $1,475 by early March.
On-chain data confirms the technical decline coincides with an acceleration in selling activity from Ethereum co-founder Vitalik Buterin. Buterin’s Kanro entity is executing a plan to liquidate 16,384 ETH to fund ecosystem development and open-source software during a period the Ethereum Foundation has termed “mild austerity.”
Arkham Intelligence reported that approximately 9,000 ETH have been sold since early February, including a 3,500 ETH withdrawal from the Aave lending protocol within the last 48 hours. Analytics firm Lookonchain stated Monday that Buterin “is selling ETH faster again,” noting the sales contributed to an 18.55% price drop for the token so far this month.
Market participants are currently monitoring a remaining supply overhang of approximately 7,350 ETH from the announced tranche. Analysts suggest this pending liquidity creates a price ceiling, as the market historically reacts sharply to foundation-linked transfers.
Previous Ethereum Foundation liquidations have frequently preceded significant price reversals. A transfer of 35,000 ETH in May 2021 occurred shortly before a 50% valuation drop, while a 20,000 ETH move to the Kraken exchange in November 2021 coincided with the asset’s lifetime peak near $4,700.
To invalidate the current bearish outlook, buyers must reclaim the pennant trendline and push the price above the 20-day exponential moving average (20-day EMA) at $2,085. Failure to hold the $1,850 level leaves the asset vulnerable to a test of the psychological support zone at $1,500.
