TL;DR
ETH broke down on Feb. 3, completing a head-and-shoulders pattern that projects about $1,820 and keeps $1,800 in focus.
Lookonchain said Vitalik sold about 2,961.5 ETH worth roughly $6.6 million near $2,228 on average, adding to bearish momentum.
Whales reduced holdings by about 140,000 ETH and hodlers showed net selling around 10,681 ETH, while URPD highlights $1,880 as key support; failure could open $1,560, while reclaiming $2,270 and $2,700 matters.
Ethereum slid into early February under mounting pressure, and on chain signals now suggest a growing threat of a move toward the $1,800 zone. Price weakness is being amplified by a synchronized pullback from influential and long term holders. A Feb. 5 market note said ETH fell below key support after a chart breakdown confirmed on Feb. 3, while new data showed whales and hodlers beginning to reduce exposure. The update framed $1,800 as the next psychological risk area if support fails.
Technical damage meets high profile selling
On the daily chart, ETH completed a head-and-shoulders pattern forming since mid-November, and the bearish reversal was confirmed when price broke the neckline on Feb. 3. The pattern’s measured move targets about $1,820, and Buterin’s selling added fuel to that downside narrative. Lookonchain reported Vitalik sold about 2,961.5 ETH, worth roughly $6.6 million, at an average near $2,228 over three days, with the selling described as ongoing. The note said that timing can weaken confidence and reinforce bearish price action.
After Feb. 3, whales excluding exchange wallets briefly accumulated between Feb. 2 and Feb. 3, then flipped once price failed to rebound. Whales shifted from dip buying to distribution, cutting roughly 140,000 ETH in a rapid risk reset. Holdings fell from about 13.93 million ETH on Feb. 3 to around 13.79 million, a reduction valued at over $290 million. Long-term holders also turned defensive as Hodler Net Position Change moved negative on Feb. 3 and Feb. 4 for the first time in weeks. The latest reading showed net selling around 10,681 ETH, signaling broad conviction is fading.
On-chain cost basis data helps map where support could form, and where a breakdown could intensify. A large supply cluster near $1,880 aligns with the $1,820 projection, creating a make-or-break zone just above $1,800. The URPD model showed one of the strongest clusters near $1,880, with about 2% of circulating ETH last moving there. ETH was described near $2,090 after losing $2,270 support. If $1,880 to $1,820 fails, the next downside target cited was near $1,560. Bearish pressure would ease only if ETH reclaims $2,270, then $2,700, and holds above them on the daily timeframe. Without that recovery, the note said rallies are likely to meet selling pressure and struggle to sustain higher levels for now too.
