Why Is $ETH Dumping? Here’s What’s Really Happening

Ethereum is currently trading around $1,920, down roughly 1.5% in the last 24 hours.

1️⃣ Institutional Outflows Are Weighing on the Market

Crypto investment products just recorded their fifth consecutive week of outflows, totaling $288M last week alone.

Out of that:

$36.5M flowed out of Ethereum-focused funds

U.S. investors led the selling pressure

Even more importantly, spot Bitcoin ETFs saw $316M in outflows last week, which is creating a broader liquidity vacuum across crypto.

Ethereum is currently acting as high-beta to $BTC.
When institutional money exits Bitcoin ETFs, major altcoins like #ETH feel the spillover.

This is macro-driven, not ecosystem-driven.

2️⃣ On February 23, 2026, Vitalik Buterin sold 1,869 $ETH

Worth approximately $3.67 million

These sales are reportedly part of a broader plan announced earlier in the year to fund ecosystem development.

Founder sales are typically:

Bearish short term (adds direct supply pressure)

Neutral-to-bullish long term (if funds support ecosystem growth)

However, timing matters.

Selling into a fragile market amplifies psychological pressure — especially when ETH is struggling to reclaim $2,000.

3️⃣ Macro Pressure: Tariff Uncertainty & Risk-Off Sentiment

New U.S. trade policy developments and tariff uncertainty have increased volatility across risk assets.

When macro uncertainty rises:

Institutions reduce exposure

Risk assets underperform

Crypto sees liquidity contraction

ETH is not immune to global capital rotation.

4️⃣ Technical Positioning

ETH is testing a key zone around $1,915–$1,920.

If this area holds:

A bounce toward $1,930–$1,950 is possible.

If it breaks:

The next meaningful support sits near $1,848.

The structure is currently range-bound with bearish pressure, dependent on ETF flow stabilization.

So Why Is $ETH Dumping?

It’s a combination of:

• $288M weekly crypto fund outflows
• $316M spot Bitcoin ETF outflows
• 1,869 ETH sold by Vitalik in 2026 (~$3.67M)
• Macro uncertainty from tariff developments
• No immediate bullish catalyst

This is a liquidity contraction phase, not a fundamental collapse.