Ethereum’s Co-Founder Offloads 20,000 ETH; Incoming Price Dip?

Ethereum co-founder Jeffrey Wilcke transferred 20,000 ETH worth approximately $72.2 million to Kraken. The move stormed the community, with several analysts flagging reduced sentiments. This month, Ethereum and other crypto assets recorded huge gains, leading to bulls changing positions. While profit-taking soared, some traders bought the last dip, setting new highs.

On-chain crypto firms flagged Wilcke’s transfers as a sale following a history of similar transactions. Despite the sale, Wilcke holds 106,006 ETH worth $384 million. Crypto assets tend to lose steam when bulls sell assets because of the influence of their holdings. Whale transfers usually shape small trader’s sentiments.

Similarly, asset flows to centralized exchanges indicate possible sales, while transfers to other custodians signify long-term holdings. 

Series of Massive Transfers

The wider community notes Wilcke’s transfer for several reasons. In May, he deposited 10,000 ETH worth $37.3 million before the market crash. He previously received 463,203 ETH from the Ethereum Foundation, which is currently worth $1.6 billion. From that stash, he transferred 356,805 ETH to exchanges.

Before the 2021 bull run, Wilcke moved 290,505 ETH to exchanges but didn’t repeat the same in the 2022 bear season. In 2023, he began moving assets to exchanges as the crypto markets gained momentum.

“Jeffrey Wilcke, the Co-founder of #Ethereum, deposited 10K $ETH($37.36M) to #Kraken again 2 hours ago and currently holds 125,738 $ETH($472M). Jeffrey Wilcke has deposited a total of  46.3K $ETH($116.4M) to #Kraken at an average price of  $2,515 over the past year.”

What’s Next For ETH Price?

As stated earlier, crypto prices are influenced by whale movements to exchanges. At the time of writing, ETH is trading at $3,691, surging 2.9% in the last 24 hours. This plunging sentiment has taken out a chunk of weekly price gains after slightly recovering this week.

Most analysts expect a rebound from this drop, setting higher price targets and citing macro factors. Institutional investors are still positive on Ethereum making a breakout and leading the altcoin season. These sentiments are shared across the board following massive gains seen after the U.S. elections. Clear-cut regulations in the United States will spur positive sentiments globally, leading to more inflows.