Ethereum co-founder Vitalik Buterin has executed the sale of approximately 2,961 Ether units, reaching a total value of $6.6 million. According to on-chain data revealed by Lookonchain on Thursday, February 5, 2026, the transactions were carried out at an average value of $2,228, slightly impacting the Ethereum price in a market that was already showing signs of weakness and high volatility.
Through a series of programmed exchanges, the Canadian programmer followed through on his previous announcement to reduce part of his personal holdings. The execution of these operations was conducted via CoW Protocol, utilizing multiple small swaps instead of a single block trade, with the primary goal of minimizing the negative impact on the asset’s liquidity across decentralized exchange platforms.
Funding Open Infrastructure and the Strategic Austerity Plan
The reallocation of these funds responds to a long-term strategy where Buterin has earmarked nearly $45 million for the development of verifiable software and open hardware. As part of this initiative, the developer seeks to foster a technological ecosystem that protects user privacy, personally taking on responsibilities that previously fell under special projects of the Ethereum Foundation during its current period of “mild austerity.”
On the other hand, this injection of personal resources aims to ensure the independence of the network’s base layer against external corporate pressures. By funding open-source technologies and secure hardware, Buterin reinforces the core mission of the blockchain, ensuring that critical infrastructure remains under the principles of individual sovereignty and algorithmic transparency, moving beyond the simple financial speculation that currently dominates the sector.
Additionally, the Ethereum Foundation has modified its liquidation policies following past criticism for massive ETH sales, now exploring alternatives such as institutional staking and DeFi-based approaches. However, individual sales by the founder continue to be closely watched by traders, who fear these moves may act as catalysts for a deeper correction in the market value of the world’s second-largest cryptocurrency.
How Will Major Holders React to This Portfolio Adjustment?
Market sentiment has become particularly sensitive, as Bitcoin’s recent drop below $70,000 has forced many leveraged whales to liquidate their positions. Since the Ethereum price has retreated by more than 5% in the last 24 hours, selling pressure from prominent figures raises questions about whether the current “crypto winter” is nearing its final conclusion or if further declines are imminent.
Moreover, analysts from firms like Bitwise suggest that, although the current environment is hostile, the network’s institutional maturity could absorb these sales without causing a systemic collapse. As patient capital enters at lower price levels, the network’s ability to maintain its technical roadmap will be crucial, determining if the asset can regain its bullish momentum before the end of the first quarter of the year.
Ultimately, Buterin’s move does not appear to be an emergency exit but rather a planned redistribution of wealth toward protocol development. While the Ethereum price faces significant headwinds, investment in privacy and security could strengthen the network’s fundamentals in the long run, laying the groundwork for a solid and sustainable recovery once global macroeconomic volatility eventually stabilizes.
