An Ethereum cofounder moved 105,736 ETH to Kraken, sparking investor fears and fueling sell-off concerns in the market.
Jeffrey Wilcke, the cofounder of Ethereum, has incited a wave of pessimism regarding ETH following a substantial asset transfer to Kraken. As indicated by on-chain data, Wilcke’s transfer of 105,736 ETH to Kraken has sparked concerns regarding a potential mass sale. However, a more detailed examination suggests that the situation is generally benign.
Investors raise eyebrows following the transfer of 105,736 ETH by an Ethereum cofounder
Jeffrey Wilcke, one of Ethereum’s eight cofounders, has transferred nearly all of his ETH holdings to the Kraken exchange. According to on-chain data, the Ethereum originator transferred 105,736 ETH, which is currently valued at $262 million.
Transferring a substantial quantity of ETH to a centralized exchange has elicited considerable attention, with concerns regarding a potential sell-off reaching a fever pitch. ETH prices have plummeted by nearly 2% within minutes of Wilcke’s Kraken transfer, indicating that the bearish signal has acquired momentum.
Wilcke was previously responsible for inciting adverse market sentiments through his ETH transfers. The ETH cofounder deposited a substantial quantity of ETH in Kraken at $3,625 in late 2024, before the steady decline below $2,000.
Currently, investors are monitoring the price action of ETH for confirmation of a sell. However, a more detailed examination of the movement of funds indicates this is not the case. Eight new wallets absorbed 105,736 ETH within minutes of the Kraken deposit, suggesting a potential custody reshuffle.
“It is possible that Jeffrey Wilcke did not intend to sell ETH, but just transferred them to other wallets,” said Lookonchain on X.
Amid the lowest ETH supply on exchanges, Wilcke’s holdings have been reported to have been transferred to Kraken. According to Onchain data, the altcoin’s circulating supply is only 4.9% on exchanges, with more than 1 million tokens transferred to non-custodial wallets.
Ahead of the $2,500 resistance level, Ethereum is encountering headwinds
The price of ETH is gradually approaching the $2,500 resistance level; however, it must first surmount a series of obstacles. Initially, the Ethereum cofounder’s deposit of 105,736 ETH has resulted in a downward pressure on the recovering asset.
A CryptoQuant analysis indicates that the altcoin’s trading volumes have increased in anticipation of the drive toward $2,500, which a frantic rush for profit taking has fueled. However, the ETH price will not be able to reach $3,000 until the asset surpasses the $2,500 resistance point.
“Ethereum’s approach to the critical $2.5K resistance level has led to overheating, characterised by a significant surge in trading volume,” read a CryptoQuant analysis.
At the time of publication, the price of ETH is $2,482, and investors are preparing to challenge the $2,500 resistance level. Glassnode reports that the Ethereum Pectra upgrade did not significantly increase network engagement, even though it set the stage for reduced L2 fees.
