Ethereum (ETH) Plunges to $1,800 Amid Vitalik's $7.3M Sale and Bearish Options Flow

TLDR

Table of Contents

Ethereum fell to $1,800, triggering $224 million in liquidations of long positions across two days
Derivatives traders positioned bearishly with put-to-call volume reaching 2.2x
Total value locked on Ethereum declined to $51 billion, marking the lowest level since May 2025, while 30-day fee generation dropped to $13.7 million
Spot Ethereum ETFs experienced $405 million in withdrawals since February 11, reducing total AUM to $12.4 billion
Co-founder Vitalik Buterin offloaded 3,788 ETH valued at approximately $7.3 million across three days, intensifying negative sentiment

Ether, the native cryptocurrency of the Ethereum network, slumped to $1,800 during the week, marking a 14% decline over a 10-day period. This downturn liquidated $224 million worth of bullish leveraged trades in just 48 hours.

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Ethereum (ETH) Price

The sharp decline has forced market participants into a defensive posture. Derivatives data from Deribit indicates the put-to-call volume ratio surged to 2.2x on Tuesday, demonstrating that speculators are prioritizing downside hedges over bullish bets on price appreciation.

The delta skew for options contracts reached 18%, indicating put options command a significant premium compared to call options. This imbalanced pricing structure generally indicates widespread apprehension rather than optimism among market participants.

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Source: laevitas.ch

Ether currently trades 63% beneath its historical peak. Yet, substantial buying interest has failed to materialize.

Network Activity Hits Multiyear Lows

Blockchain metrics are compounding the bearish outlook. The total value locked within Ethereum’s ecosystem has contracted to $51 billion, representing the weakest figure recorded since May 2025.

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Source: DefiLlama

Transaction fees collected over the trailing 30 days totaled merely $13.7 million. This figure pales in comparison to the $33 million monthly average observed during late 2025, indicating a substantial decline in activity across decentralized protocols.

Diminished fee generation and contracting TVL signal weakening demand for Ethereum’s computational resources, which market observers interpret as a concerning indicator for ETH’s fundamental value thesis.

Ethereum co-creator Vitalik Buterin offloaded 3,788.57 ETH, approximately $7.3 million in value, during the past three days, per blockchain intelligence provider Lookonchain. Although Buterin has historically channeled proceeds from ETH disposals toward philanthropic initiatives and ecosystem development, the sale’s timing contributed additional pessimism to an already challenging market environment.

vitalik.eth(@VitalikButerin) continues to sell $ETH.
Over the past 3 days, he has sold 3,788.57 $ETH($7.3M).https://t.co/pMvkZHjIyD https://t.co/yQHZT3jRtA pic.twitter.com/wDreT4ysOW
— Lookonchain (@lookonchain) February 24, 2026

Data from Arkham Intelligence reveals addresses associated with Buterin maintain over $430 million in digital assets, indicating the recent transactions represent a minimal portion of his aggregate portfolio.

ETF Outflows Accelerate

United States-based spot Ether exchange-traded funds have registered $405 million in net redemptions since February 11. Combined assets under management for these investment vehicles have contracted to $12.4 billion.

According to SoSoValue , February 24 (ET), Bitcoin spot ETFs had a total net inflow of $258 million, with Fidelity FBTC ranking first with a net inflow of $82.8138 million. Ethereum spot ETFs had a total net inflow of $9.2271 million, and Grayscale ETH saw a net inflow of… pic.twitter.com/aGDzZHWB07
— Wu Blockchain (@WuBlockchain) February 25, 2026

The withdrawal pattern coincided with gold-focused ETFs attracting $822 million during the week concluded February 20, as gold valuations surged above $5,150, pointing to potential institutional capital reallocation away from digital assets.

ETH’s 20-day price correlation with Bitcoin has persisted above 95% for three straight weeks, indicating Ether has predominantly tracked BTC’s movements, which itself declined below $65,000 this week.

The put-to-call ratio maintains elevated levels while ETF redemptions have persisted through the latest trading periods.