Vitalik Dumps ETH, Is $1,800 the Next Break Point?

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Ethereum‘s price is pulling a dramatic sigh, like a boss with too many meetings. February is here, and selling momentum is stacking up across on-chain signals and technical indicators, while ETH acts like it’s auditioning for a reality show. The token slipped below key support after a chart breakdown, and big holders plus long-term investors started trimming exposure faster than you trim your vacation budget.

With Vitalik cutting ETH and accumulation cooling, that $1,800 zone is suddenly the most dramatic plot twist in the near-term thriller called “Crypto Market.”

The Head-and-Shoulders Breakdown, and Vitalik’s Sell-Off, Because of Course

Ethereum’s latest decline sped up after a clean technical breakdown on February 3, because charts love to dive when life hands you lemons and a microchip of fear.

On the daily chart, ETH finally admitted it was doing the head-and-shoulders thing it’s been pretending to work on since mid-November. When the price failed to hold above the neckline and broke lower on February 3, the bearish pattern got its official stamp of “We’re doing this.”

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Head-and-shoulders formations typically signal trend reversals, which is crypto-speak for “things just got dramatic.” The projected downside target is calculated by measuring the height of the pattern and applying it below the neckline. In Ethereum’s case, this points toward the $1,820 zone.

At around the same time, on-chain data showed that Vitalik Buterin had begun selling ETH.

vitalik.eth(@VitalikButerin) is dumping $ETH fast!

Over the past 3 days, Vitalik has sold 2,961.5 $ETH($6.6M) at an average price of $2,228 – and the selling is still ongoing.

– Lookonchain (@lookonchain) February 5, 2026

Over the past three days, Vitalik sold around 2,961 ETH worth roughly $6.6 million at an average price near $2,228. The selling began just as Ethereum was losing technical support and has continued through the breakdown.

This timing is… well, dramatic. When a major ecosystem figure reduces exposure during a chart breakdown, confidence tends to look at the exits and wonder if it’s time to leave the party. Vitalik’s sales didn’t calm nerves; they added a little extra spice to the bearish mix.

As a result, the technical breakdown and high-profile selling combined to mark February 3 as a major turning point for Ethereum.

Whales and Hodlers Start Selling After February 3 Signal

After the breakdown and Vitalik’s sales, large and long-term holders also started changing their behavior-because apparently, everyone loves a dramatic plot twist.

Data shows that Ethereum whales, excluding exchange wallets, increased their holdings significantly between February 2 and February 3 as they tried to buy the dip. But once the price failed to recover, that accumulation quickly flipped to distribution faster than a show’s season finale.

On February 3, whale holdings stood near 13.93 million ETH. They’ve since fallen to around 13.79 million ETH, a drop of roughly 140,000 ETH, worth over $290 million. This looks less like “diamond hands” and more like cautious, “we’ll see how this plays out.”

At the same time, long-term holders also started selling.

Hodler Net Position Change tracks the net movement of ETH held by wallets that haven’t moved coins for more than 155 days. These wallets are basically the senior citizens of crypto-patient, stubborn, and occasionally forgetful about the good old days. Positive readings mean accumulation, negative values indicate net selling.

Since late December, this metric had remained positive, meaning long-term holders were steadily adding to their positions. However, on February 3 and 4, it turned negative for the first time in weeks.

The latest reading shows net selling of around 10,681 ETH. Translation: even the patient folks are trimming exposure after the breakdown, because sometimes even grandma wants to cash out before the storm ends.

Together, these signals show a clear sequence. Vitalik reduced holdings, the chart structure failed, whales began selling, and long-term holders followed, all around the same time. It’s like a synchronized swimming routine, but with less water and more spreadsheets.

When both large holders and hodlers step back at the same time, downside risks usually increase.

On-Chain Cost Clusters Point to $1,800 as Key Ethereum Price Zone

On-chain supply data now helps explain where Ethereum may find its next major support.

The UTXO Realized Price Distribution (URPD) shows where the current supply last moved on-chain. It’s basically a cost-basis map for adults who still pretend they’re just hodling their way through a tech revolution.

Each bar represents how much ETH last changed hands within a specific price range. Large clusters often act as support or resistance because many holders have their cost basis in those zones.

Current data shows one of the strongest supply clusters near $1,880. Around 2% of circulating ETH last moved in this range, making it a key psychological and structural support area.

This aligns closely with the technical projection from the head-and-shoulders pattern, which points toward $1,820.

Ethereum has already lost the $2,270 support level. With price now trading near $2,090, the next major test sits between $1,880 (per the on-chain cluster) and $1,820.

If this zone fails, the next ETH downside target appears near $1,560 based on downside Fibonacci extensions.

On the upside, the bearish setup would weaken only if Ethereum reclaims $2,270 and then $2,700, and holds above them on the daily timeframe. Without that recovery, all Ethereum price bounces are likely to face selling pressure.

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2026-02-05 13:21