Ethereum’s price plummeted to a shocking $1,400 level, marking its lowest point in seven years, following a significant sell-off by Donald Trump’s World Liberty Finance. This dramatic market movement has sent shockwaves through the crypto ecosystem, coinciding with broader market turmoil affecting both Bitcoin and Ethereum.
World Liberty Finance’s $8M ETH Dump Analysis
Blockchain analytics firm Lookonchain revealed that World Liberty Finance, Trump’s controversial DeFi protocol, offloaded 5,471 ETH tokens worth approximately $8.01 million. The transaction occurred at $1,465 per ETH, representing a substantial decline from previous trading levels above $1,600.
This sell-off is particularly noteworthy as it aligns with a broader trend of long-term ETH holder capitulation, potentially signaling a market bottom. World Liberty Finance had previously accumulated 67,498 ETH at an average price of $3,259, investing roughly $210 million in total.
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Market Impact and Technical Analysis
The current sell-off has resulted in an unrealized loss of approximately $125 million for World Liberty Finance. Technical indicators from CoinCodex suggest continued bearish sentiment, though ETH has shown signs of recovery, trading at $1,591 with a 7.44% bounce from recent lows.
FAQ Section
Why did World Liberty Finance sell their ETH holdings?
While the exact reason remains unclear, analysts suggest the sell-off was triggered by ongoing price decline and potential risk management strategies.
What does this mean for Ethereum’s future price?
Technical indicators remain bearish, though some experts view this capitulation as a potential bottom signal for the market.
How does this affect the broader crypto market?
The sell-off has contributed to increased market volatility and uncertainty, particularly in the DeFi sector where Ethereum plays a crucial role.