Vitalik Buterin's $7 Million ETH Sell-Off Sparks Market Concerns

Ethereum co-founder Vitalik Buterin has made significant withdrawals and sales of ETH in recent weeks, with a total value of around $7 million. The sell-off comes as the cryptocurrency's price has plummeted by 30% over the past month, currently trading below the psychological support level of $2,000.

According to data from Lookonchain, Buterin withdrew 3,500 ETH from DeFi protocol Aave on February 22 and sold part of it within hours. This withdrawal is notable as it contrasts with Buterin's previously stated intention to deploy tokens strategically for long-term goals over the next few years.

Buterin's sudden movement of assets has raised questions about his long-term financial strategy, particularly given the Ethereum Foundation's recent announcement of a period of 'mild austerity' to achieve its goals. Despite this, some on-chain analytics firms argue that Ethereum is now flashing severely oversold technical signals, with data from Santiment indicating an undervaluation of 14.3%.