Ethereum Faces Mounting Sell Pressure as Key Support Level Tested

Ethereum price tests $1,800 support amid major sell-offs from Vitalik Buterin and institutions. The Ethereum Foundation shifts to staking for sustainable income as technical indicators signal extreme fear.

Ethereum's price has declined to a 20-day low, breaching critical moving averages as a wave of selling activity from major holders washes over the market. The cryptocurrency is now testing the crucial $1,800 support level, with technical indicators flashing signs of significant oversold conditions.

Institutional Moves and Founder Sales Create Headwinds

Significant transactions from prominent figures and large investors are contributing to the current downward pressure. Ethereum co-founder Vitalik Buterin has been a notable seller, offloading 3,788 ETH worth approximately $7.3 million over the past 72 hours. This activity is part of a broader, pre-announced plan to liquidate a total of 16,384 ETH to fund ecosystem development, bringing his total February sales to 10,723 ETH for $21.74 million.

Simultaneously, substantial selling from a major institutional wallet added to the market strain. Identified as 0xeadc, the wallet sold 16,924 ETH within a mere 30-minute window at an average price of $1,889, realizing nearly $32 million and disrupting short-term market equilibrium.

Foundation Shifts Strategy Toward Staking Revenue

In a strategic pivot, the Ethereum Foundation has initiated a systematic staking program for its treasury holdings. On February 24, 2026, the organization transferred an initial 2,016 ETH into staking contracts, marking the beginning of a planned deployment totaling 70,000 ETH.

This new approach utilizes the open-source Dirk and Vouch tools developed by Attestant and relies on minority clients within a geographically distributed infrastructure. The foundation anticipates an annual staking yield of roughly 2.8%, which will be directed back into its treasury. The goal is to establish a sustainable income stream, reducing reliance on periodic asset sales to fund protocol research, development work, and community grants. According to Arkham Intelligence data, the foundation's current holdings stand at 172,650 ETH and 10,000 WETH.

Technical Picture Points to Extreme Fear

From a chart perspective, Ethereum is under clear technical pressure. The asset recently touched $1,832, its lowest point in 20 days, and has broken below both its 50-day and 200-day moving averages. The Relative Strength Index (RSI) sits at a deeply oversold level of 20, while the broader Crypto Fear & Greed Index has plummeted to 11, reflecting extreme market fear.

All eyes are now on the $1,800 support zone. A sustained break below this level could open the path toward $1,500, while any recovery would first need to overcome resistance near $1,900. Market observers note that the ability of institutional buyers to absorb the ongoing sell pressure will be a key determinant of price direction in the near term.

Contrasting Accumulation and Development News

Amid the selling, one entity is aggressively accumulating. BitMine Immersion Technologies has expanded its position to 4.42 million ETH, giving it control of about 3.66% of the circulating supply.

In separate development news, the Ethereum Foundation announced the formation of a dedicated DeFi team, which will be led by Charles St. Louis and Ivan Bogatyy.