Ethereum co-founder Vitalik Buterin is unloading millions of dollars' worth of ETH into a rapidly declining market.
On February 22, Lookonchain revealed that Buterin withdrew 3,500 ETH— valued at approximately $6.95 million — from the DeFi protocol Aave. Within hours of the withdrawal, he had already sold 571 of those tokens for $1.13 million.
The sudden movement of assets highlights a stark contrast between Buterin’s stated long-term financial strategy and his immediate market actions.
On January 30, the 32-year-old developer announced that the Ethereum Foundation was entering a period of "mild austerity" to achieve its goals.
He withdrew 16,384 ETH to support the firm, planning to strategically deploy the tokens for long-term goals "over the next few years."
Instead, the execution has been remarkably swift. Since February 2, Buterin has sold more than 7,380 ETH for roughly $15.5 million at an average price of $2,100.
Combined with today's transactions, the co-founder has liquidated over half of his designated austerity reserve in less than a single month.
The concentrated selling pressure from the network's most prominent architect arrives at a precarious moment for the asset.
ETH has plummeted 30% over the past month, currently trading just below the psychological support level of $2,000.
Institutional investors and market participants frequently view heavy founder liquidations during steep market drawdowns as a bearish indicator, regardless of the stated administrative intent.
Despite the persistent sell-side pressure originating from Buterin, some blockchain intelligence firms argue the asset is flashing oversold technical signals.
Data from Santiment indicates that ETH's 30-day Market Value to Realized Value (MVRV) ratio points to severe technical undervaluation.