Ethereum price hits $3,500 as co-founder sells off 20,000 ETH

Ethereum (ETH) price rose to $3,549 after a significant amount of 20,000 ETH was transferred from co-founder Jeffrey Wilcke’s wallet. This latest sale continues Wilcke’s ongoing strategy to liquidate his early ETH holdings.

The move has raised concerns about its impact on the market, but the price of ETH remains stable above $3,500.

Ethereum co-founder continues asset liquidation trend

Ethereum co-founder Jeffrey Wilcke recently transferred 20,000 ETH to a Kraken exchange, another sign of a growing trend of asset liquidation.

– Advertising –

Since then, Wilcke has sold a good portion of the initial allocation his Ethereum received when it launched in 2016. Ahead of the 2021 bull market, he made his first large deposit of 290,505 ETH, averaging $190.

Last year, Wilcke stopped buying and sold over 63,000 ETH after the summer of 2023. However, he still has 106,000 ETH and could sell it at current market prices.

As ETH moves from Wilckes Wallet to exchanges, speculation is rife about whether the popular trader is ready for another round of price swings.

– Advertising –

The crypto community has alerted the community to Wilcke’s selling pattern, which, similar to previous actions by the Ethereum Foundation, is a cause for concern. Some market analysts see these moves as potential market bearish signals for local price spikes. But others see the measures as part of a broader strategic approach that is not necessarily pessimistic.

As open interest nears a three-year high of $16 billion, Ethereum price remains above the $3,500 mark

Recent whale sales caused prices to decline. However, Ethereum price remains above the $3,500 level. Despite large ETH transfers taking place on exchanges, the coin’s price briefly rose by $3,549 before crashing again. In the short term, ETH has potential resistance at $3,700, followed by $4,000 as the next key level to bet on.

However, even with the transfer of 20,000 ETH, the recent rise in ETH price could not be stopped, meaning the market is withstanding this selling pressure. While the price of WTadax remains under control at $4,000, it is not yet clear which direction the price of ETH will move considering that Bitcoin (BTC) is currently breaking out of its own new price range.

Despite the market’s strong negative momentum earlier this week, ETH’s open interest is near a three-year high with $16.1 billion in leveraged positions. Long positions at 72% may mean short-term volatility as the market heads towards possible corrections. However, stock market liquidity is around $70 billion and these fluctuations can probably be managed.

Whales Hold 65 Million ETH Amid Growing Liquidity

The Ethereum community has mixed feelings about whale sales like Wilcke. Some see the moves as a way to increase uncertainty, while others say the market’s liquidity can absorb these inflows. Even with more than 34.2 million ETH staked, the selling pressure from long-term holders is quite strong.

Furthermore, the Ethereum ecosystem is showing clear signs of long-term growth. Whales hold more than 65 million ETH and there is significant overlap with retail investors and stakers. In the long term, the Ethereum price is unlikely to be significantly affected by the actions of individual companies because ownership of ETH is so large.

The rise in popularity of Ethereum ETFs also supports the token’s bullish outlook. $90 million in new inflows for Ethereum ETFs brings total assets under management to over $10 billion. Ethereum’s future growth and expansion has attracted growing interest from institutional investors, signaling confidence in the network’s future.