A warning has been raised that Ethereum (ETH) could be put to the test at its key support level of $1,500. Ethereum co-founder Vitalik Buterin (비탈릭 부테린) has recently sold ether in succession, and analysis says the possibility of an additional sale of about 7,000 ETH could weigh on the market in the short term.

On Feb. 23, Cointelegraph reported that Ethereum fell 5.6 percent in a day to around $1,850 as risk-off sentiment spread due to global tariff issues. Technically, it slipped below the lower trendline of an existing bearish pennant pattern. With rising volume, market caution over a continuing downtrend has increased. When a bearish pennant breaks down, a further correction similar to the prior decline is typically seen. Applying that suggests a short-term target of about $1,475, leaving room toward the psychological support near $1,500.

In particular, Buterin's planned sales are pressuring investor sentiment. On Jan. 30, he said he would sell 16,384 ETH to raise funds for ecosystem investment and open-source software development. On-chain data shows about 9,000 ETH has been sold sequentially since early February, and some of the tokens were withdrawn from the DeFi protocol Aave and then sold. Buterin's cumulative sales since early February exceed 8,000 ETH. But about 7,350 ETH reportedly remains from the planned amount, prompting speculation that supply pressure could continue.

Ethereum has fallen about 18.5 percent in February. The market sees the decline as not unrelated to Buterin's sales. There have been similar cases in the past. After the Ethereum Foundation (EF) sold 35,000 ETH in May 2021, the price plunged about 50 percent. In November that year, after 20,000 ETH was transferred to the exchange Kraken, Ethereum formed a high of $4,700 and then turned to a downtrend. Large token movements tend to act as psychological signals and increase short-term volatility.

Still, a bearish outlook is not confirmed. If the price regains the lower trendline and breaks above the 20-day moving average of about $2,085, the bearish scenario could be invalidated. Some analysts also cite the possibility of entering a short-term oversold zone, leaving room for a rebound.

In the end, the key variables are the pace at which the remaining planned sales are absorbed and macroeconomic uncertainty. If additional selling is concentrated over a short period, the likelihood of breaking below $1,500 could increase. If the selling is absorbed gradually, the market impact could be limited, Cointelegraph reported.