Vitalik Buterin reduces holdings by 17,000 ETH, with a 37% monthly decline. Ethereum's selling pressure and staking yields both decline, exerting dual pressure.

On February 25, news reports indicate that as Ethereum’s price has declined by approximately 37% this month, market attention has shifted to Vitalik Buterin’s on-chain fund movements. On-chain data platform Arkham Intelligence shows that Buterin’s associated wallet held about 241,000 ETH in early February, but has recently decreased to around 224,000 ETH, with continuous outflows during this period, totaling nearly $43 million in a single month, adding further volatility to ETH market sentiment.

On-chain records indicate that this batch of Ethereum was not sold off in a single large transaction but was gradually exchanged through decentralized aggregated trading methods, a typical slippage reduction strategy. This pace suggests that selling pressure is being released gradually rather than causing a short-term liquidity shock. Meanwhile, Ethereum’s price has fallen back to around $1,900, with the weak trend resonating with ongoing fund outflows, intensifying investors’ cautious outlook on the short-term trend.

Previously, Vitalik Buterin announced in January 2026 that he had reserved about 16,384 ETH (approximately $43 million) to support privacy technology, open-source hardware, and security software development, with plans to deploy these funds gradually over the coming years. This move is seen as a long-term ecosystem investment rather than simple profit-taking, but during a price decline cycle, it can still be interpreted by the market as a selling signal.

Fundamentally, over 30% of Ethereum supply is currently staked, but the annualized yield has compressed to about 2.8%, reducing its attractiveness compared to risk-free returns and weakening staking incentives. Meanwhile, institutional holders are under significant pressure; some institutions have faced substantial unrealized losses amid ETH’s sharp decline over the past six months, further amplifying market discussions about Ethereum’s liquidity and valuation recovery potential.

In an environment of tight macro liquidity and weakening narrative-driven momentum, ETH’s price movement is increasingly influenced by on-chain selling pressure, changes in staking yields, and the long-term allocation of ecosystem funds. In the short term, the market is likely to continue focusing on key support levels and the subsequent actions of large addresses.