Ethereum's price has fallen sharply this month, dropping from above $2,700 in early February to $1,880 as of February 23, 2026. This 36% monthly decline breached $2,000 this week, driven by weak derivatives open interest and rising exchange inflows.

Vitalik Buterin's sales intensify the sell-off. He offloaded over 8,800 ETH ($16-18 million) this February, swapping into USDC and GHO stablecoins. On-chain data shows these moves fund Ethereum Foundation projects amid budget cuts, signaling long-term confidence despite short-term pain.

So What? Key Implications for Traders

• Bearish Momentum Builds: $1,800-1,850 support is critical. A break triggers liquidations, targeting 1,750 next. RSI at 30 suggests oversold conditions, but no reversal signals yet.

• Foundation Signal: Vitalik's sales historically precede 20% $ETH rebounds within weeks, as profit-taking clears weak hands.

• Trade Action: Short ETH with stops above 1,950. Long setups form only on 1,900 reclaim with rising OI. Pair with $BTC correlation watch; ETH/BTC at 0.042 risks further divergence.

Monitor inflows and ETF flows today. Position defensively; volatility favors disciplined traders. Stay sharp.