Ethereum co-founder Vitalik Buterin and other prominent "whales" have sold millions in ETH, pushing the cryptocurrency below $2,000. According to CryptoSlate, Buterin's high-profile sales sparked panic among retail investors, yet deeper analysis reveals that systemic leverage unwinding and massive selling activity were at play. In just three days, Buterin sold 6,183 ETH, valued at $13.24 million, as part of a calculated funding strategy for open-source projects. This isn't simply a case of a founder losing confidence; it reflects a well-planned conversion of ETH into stablecoins for future expenses. However, the psychological impact of such sales can deepen bearish market sentiment, especially as Buterin remains a significant holder with over 224,105 ETH. The central question for investors is whether Buterin's sales triggered the drop below $2,000. While his sell-off alone couldn't break major market levels, it occurred amid a broader trend of large holders exiting the market. Stani Kulechov, founder of the DeFi protocol Aave, also sold a significant amount, indicating a coordinated de-risking among industry leaders. Record selling activity has been noted on the Ethereum network, with increased order sizes suggesting high-net-worth individuals are actively reducing exposure. This is compounded by external factors, such as substantial outflows from ETH ETFs and macroeconomic pressures leading to a broader asset sell-off. Liquidations of over hundreds of millions in ETH have exacerbated the situation, creating a cascading effect where forced sales lead to further declines. As the market searches for stability, three indicators will be crucial: liquidation intensity, ETF flow trends, and large-holder behavior. If liquidations remain high, ETH could continue to drop. Conversely, a decline in liquidations could signal a market bottom. Ultimately, Buterin’s sales reflect a strategic move for public goods funding rather than a loss of faith, yet they highlight the volatile environment where even minor actions by insiders can have outsized effects. Investors should remain vigilant as they navigate this turbulent landscape.