Ethereum’s (ETH) price surged to $3,549 following a significant transfer of 20,000 ETH from co-founder Jeffrey Wilcke’s wallet. This latest sale continues Wilcke’s ongoing strategy of liquidating his early ETH holdings.
The move has sparked concern about market implications, but ETH’s price remains steady above $3,500.
Ethereum Co-Founder Continues Asset Liquidation Trend
Ethereum co-founder Jeffrey Wilcke recently moved 20,000 ETH over to a Kraken exchange, further signifying a rising trend of asset liquidation.
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Wilcke has since sold a good chunk of the initial allocation his Ethereum received with launch in 2016. Before the 2021 bull market, he made his first big deposit of 290,505 ETH, averaging $190.
In the past year, Wilcke stopped buying and sold over 63,000 ETH after the summer of 2023. However, he still has 106,000 ETH and, at current market prices, could sell these.
With ETH moving from Wilcke’s wallet to exchanges, speculation is brewing about whether the popular trader is ready for another round of price fluctuations.
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The crypto community has alerted the community to Wilcke’s selling pattern, which, similar to past actions taken by the Ethereum Foundation, raises concerns. Some market analysts see these moves as potential market drawdown signals of local price peaks. But others see the actions as part of a more broadly strategic approach that’s not necessarily bearish.
As Open Interest Nears Three-Year High at $16B, Ethereum Price Holds Above $3,500 mark
The recent whale sales pressured the price to lower. However, Ethereum price holds above the $3,500 mark. Even though large ETH transfers to exchanges were taking place, the coin’s price rocked $3,549 shortly before dropping off again. In the short term, ETH has a potential resistance at $3,700, followed by $4,000 as the next major level to bank on.
However, even with the 20,000 ETH transfer, the recent spike in ETH price hasn’t been halted, which means the market is taking this selling pressure. While WTadax’s price remains under control at $4,000, it is not clear yet in which direction ETH’s price will go, considering that Bitcoin (BTC) is currently breaking out of its own new price range.
Even with the strong negative impetus of the market earlier this week, ETH’s open interest is sitting close to a three-year high at $16.1 billion of leveraged positions. Long positions at 72% may mean short-term volatility as the market manoeuvres to potential corrections. However, the exchange liquidity is in the region of $70 billion, and these swings can probably be handled.
Whales Hold 65 Million ETH Amid Growing Liquidity
The Ethereum community sees whale sales, like Wilcke, with mixed feelings. Some perceive the moves as one way to drive uncertainty, while some say the market’s liquidity can absorb these inflows. So, the selling pressure from long-term holders is pretty weighed in, even with more than 34.2 million ETH staking.
Additionally, the Ethereum ecosystem exhibits clear indications of being a long-term growth. Whales hold more than 65 million ETH, and there’s substantial overlap with retail investors and stakers. In the long term, the Ethereum price is unlikely to be impacted significantly by the actions of any single entity, as the spread of ETH ownership is such.
The popularity rise of Ethereum ETFs also supports the bullish outlook of the token. New inflows of $90 million for Ethereum ETFs bring total assets under management to more than $10 billion. Ethereum’s future growth and expansion have seen growing interest from institutional investors, signalling confidence in what the future holds for the network.
