Ethereum Faces Renewed Selling Pressure as Market Weighs Buy-the-Dip vs Further Liquidation

Ethereum is once again under selling pressure as investors debate whether to buy the dip or continue trimming positions following the recent crypto market crash. Bearish sentiment has been fueled by notable on-chain activity, including ETH movements linked to Ethereum co-founder Vitalik Buterin and large-scale liquidations by Trend Research, both of which have intensified short-term uncertainty around Ethereum price action.

On-chain data shows that Vitalik Buterin recently sold 493 ETH worth approximately $1.16 million, following an earlier sale of around 212 ETH exchanged for USDC. In addition, more than 5,000 ETH were converted into WETH, which sparked speculation that further sales could follow. However, Buterin later clarified that a total of 16,384 ETH was withdrawn to fund open-source security, privacy, and verifiable technology projects. He emphasized that these funds are intended to be deployed gradually over several years as part of the Ethereum Foundation’s “mild austerity” phase, easing concerns about sudden large-scale sell-offs impacting market stability.

At the same time, Trend Research has significantly contributed to Ethereum’s selling pressure. The firm deposited 30,000 ETH to Binance, adding to more than 93,000 ETH sold over the past few days to cover loan repayments and manage leveraged positions. According to on-chain analytics, Trend Research has reportedly suffered losses of around $400 million, forcing it to reduce ETH exposure from nearly $2 billion last month to about $1.33 billion. Its liquidation risk remains concentrated between the $1,781 and $1,862 price range.

Despite the heavy selling, Ethereum has shown resilience. After rebounding more than 6%, ETH is trading near $2,320, recovering from lows below $2,200. Institutional interest has also emerged, with DBS Bank accumulating nearly 25,000 ETH during the downturn. However, trading volume has declined by roughly 15% over the past 24 hours, signaling reduced trader participation.

From a technical perspective, Ethereum needs to reclaim the 200-week moving average near $2,451 to confirm a sustained uptrend. Meanwhile, weakness in the ETH/BTC pair and declining futures open interest suggest that cautious sentiment still dominates the broader crypto market in the near term.