#我在Gate广场过新年 V神's Background and Motivation for Selling ETH and the Reasons for ETH's Plunge

1. Background and Motivation for Selling

V神(Vitalik Buterin), as a co-founder of Ethereum, is often in the market spotlight for his on-chain activities. According to publicly available information, his recent ETH sales are mostly related to supporting ecosystem projects, charitable donations, or personal financial planning, rather than purely for profit. For example, he has explicitly stated that selling ETH is to fund projects he considers valuable, including technological research within the Ethereum ecosystem or charitable causes(such as biomedical R&D).
It should be noted that while V神's selling activities may trigger short-term market sentiment fluctuations, the total amount of ETH he holds accounts for a relatively small proportion of the overall circulating supply of Ethereum, insufficient to independently dominate market price movements.

2. Main Reasons for Ethereum's Plunge

Macroeconomic Factors Dominate: Recently, the global macroeconomic environment has become increasingly uncertain. For instance, escalating tariffs under Trump’s trade policies have triggered risk aversion in the markets, coupled with changing expectations of Federal Reserve interest rate policies, leading to a tightening of dollar liquidity. As a high-risk asset, cryptocurrencies have come under pressure alongside US stocks and tech stocks, with funds flowing out of the crypto market, creating systemic selling pressure.

Leverage Liquidations Amplify the Drop: Ethereum's price rapidly broke below key support levels(such as $2000), triggering large-scale forced liquidations. High-leverage futures positions during low liquidity periods(such as weekends) magnify volatility, creating a "longs liquidated by longs" stampede effect, further accelerating the price decline.

Institutional and Whale Selling Pressure: Funds in US spot Ethereum ETFs continue to flow out, and institutional investors are reducing holdings, weakening market buying support. Meanwhile, on-chain data shows some whale addresses transferring ETH to exchanges, signaling potential sell-offs and increasing market panic.

Technical and Market Sentiment Deterioration: Technical indicators for Ethereum show increased bearish signals(such as breaking multiple-week support levels, weakening moving average systems), and the market fear and greed index dropping to extreme fear levels. Investor confidence is low, further driving prices downward.

Conclusion: While V神's selling ETH may have a short-term impact on market sentiment, it is not the core reason for this Ethereum plunge. The current market decline results from a confluence of macro risks, leverage liquidations, institutional selling pressure, and technical deterioration. Price fluctuations should be understood within the broader market environment.