Ethereum Drops as Co-Founder Selloff Unsettles Traders
Ethereum (ETHUSD) price decreased 2.31% over the past 24 hours, falling to $1,936.64 on Sunday, according to trading data from crypto exchanges today.
ETHUSD headed south amid a slightly weaker broader cryptocurrency market, primarily triggered by a significant sell-off by one of its co-founders, which has created negative sentiment in the community.
Reports indicate that Ethereum co-founder Jeffrey Wilcke transferred approximately $157 million worth of ETH to Kraken, raising concerns about further selling pressure in an already fragile ETH market. Specifically, Wilcke moved around 79,000 ETH, valued at roughly $157–158 million at the time of the transfer.
Market data revealed that a total of 79,258.61 ETH, amounting to about $157 million, was transferred through four addresses after about seven months of inactivity, leaving approximately 27,422 ETH remaining in his wallet.
Wilcke is well-known for creating the Geth client and has distanced himself from active development. He has a history of periodically transferring large amounts of his early-allocated ETH to Kraken for sale.
While on-chain and exchange data strongly suggest that a major holder is either planning or facilitating a sale, the transfer alone does not confirm that all the coins have been sold on the market yet.
This move comes as Ethereum trades below the crucial psychological $2,000 level. Analysts are closely monitoring support levels in the $1,850–$1,900 range and resistance around $2,000–$2,080.
Additionally, spot ETH ETFs have seen significant net outflows, including approximately $82–83 million in a single day, with one major fund losing over $67 million in just one session.
In recent weeks, Vitalik Buterin, another co-founder, sold around $17,000–19,000 ETH, which represents about 7% of his holdings. This further contributes to the narrative of co-founders reducing their exposure.
Although a $157 million transaction is relatively small compared to Ethereum’s total market capitalisation, which is in the hundreds of billions, and its daily trading volume in the billions, sales by known co-founders typically have a greater impact on market sentiment than anonymous whale transactions.
Wilcke’s transfer is a significant move from a co-founder, which understandably unsettles traders.
However, its real impact on Ethereum’s long-term trajectory depends on how quickly those coins are sold on the market, how ETH performs around key support levels, and whether the structural flows from ETFs and institutions improve or continue to decline in the coming days. XRP Attempts Fresh Breakout at Oversold Technical Zone
