Ethereum’s native token, Ether (ETH), is poised to test and potentially break the $1,500 support level in the coming days, according to technical analysis and market data. This move follows a significant breakdown from a key chart pattern amid rising selling pressure.
On Monday, ETH’s price dropped over 5.60% to about $1,850, breaking below the lower trendline of its bear pennant pattern. Consequently, this breakdown signals a potential decline toward $1,475 by end-February or early March.
The bulls must reclaim the pennant’s lower trendline as support to invalidate the bearish outlook. However, they face additional headwinds from founder-linked selling pressure.
Ethereum co-founder Vitalik Buterin said he would sell 16,384 ETH to fund ecosystem initiatives. Since early February, Arkham Intelligence has flagged about 9,000 ETH sold in batches.
Meanwhile, onchain resource Lookonchain noted Buterin “is selling ETH faster again,” according to a post on Monday. Consequently, ETH has fallen 18.55% in February, aligning with this distribution.
Historical data shows similar founder-linked transfers have amplified bearish sentiment. For example, a May 2021 transfer of 35,000 ETH preceded a 50% price drop.
Similarly, a November 2021 transfer of 20,000 ETH coincided with Ether’s peak near $4,700. Therefore, these conditions increase the odds of ETH hitting its bearish target below $1,500.
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