As Buterin continues to sell ETH, the price of Ethereum may drop below $1.5K.

Ethereum's native token Ether (ETH) is on track to test and break the $1,500 support level in the coming days.

Main Receptors:

Ethereum has entered the crash phase of the existing bullish continuation pattern.

ETH price may drop below $1,500 amid a founder-led sell-off in early March.

ETH bear pennant split target $1,475

On Monday, the price of ETH fell over 5.60% to $1,850 amid broader risk concerns driven by nervousness around tariffs.

By doing so, the largest altcoin broke below the lower trend line.

A bearish pennant breakdown is usually resolved when the price declines to the height of the previous downtrend.

Applying the same principle to the ETH charts would bring the lower target to $1,475 as it nears the psychological support level of $1,500 in late February or early March.

Related: Ethereum Price: Classic Chart Pattern Focuses Below $2K ETH

Therefore, the bulls should retrace the pennant's downtrend as support, followed by a continued rally above the 20-day exponential moving average (20-day EMA, the green line) at $2,085, which could devalue the outlook.

Vitalik Buterin may sell more ETH soon.

Ethereum founder Vitalik Buterin's planned ETH selloff didn't help the bulls regain their footing in February.

On January 30, Buterin announced that he would sell 16,384 ETH to support ecosystem work, open source software and other long-term initiatives at the Ethereum Foundation's “mild savings” level.

Since early February, onchain tracker Arkham Intelligence has shown that nearly 9,000 ETH have been sold in batches, with the pace picking up again after 3,500 ETH were withdrawn from Aave in the last 48 hours.

“ETH is selling fast again,” said Vitalik Buterin, an onchain monitoring source, Lookonchain, on Monday.

Coinciding with Buterin's ETH distribution, the price of Ethereum has fallen 18.55% so far in February. If it exhausts the remaining ~7,350 ETH, it can grow exponentially.

The Ethereum Foundation's story illustrates how founder-linked offerings, including treasury transfers, fueled the bearish sentiment among traders.

For example, in May 2021, 35,000 ETH transfers (about $125 million at the time) fell weeks before the 50% ETH price.

Later, the foundation transferred another 20,000 ETH ($95 million) to Kraken on November 11, 2021, a move that, in hindsight, coincided with Ether's next leg down to around $4,700.

Such conditions increase the chances of ETH hitting its ultimate target below $1,500 in the coming days.