Ethereum co-founder Jeffrey Wilcke recently transferred 22,000 ETH, worth $41.13 million, to crypto exchange Kraken on June 5. This move follows previous large-scale ETH sales by the Ethereum Foundation and co-founder Vitalik Buterin, fueling speculation that the ETH price may experience a significant drop in the upcoming weeks.
Etherscan data reveals that the last time Wilcke sold a considerable amount of ETH was back in January 2021, where he offloaded 15,000 ETH to Kraken. Despite these sales, Wilcke still holds around 150,038 ETH, valued at approximately $280.32 million.
The string of ETH selloffs by prominent figures in the Ethereum ecosystem, such as Wilcke and Buterin, along with the Ethereum Foundation, have led to increased uncertainty in the crypto community. It’s worth noting that past ETH transfers by the Ethereum Foundation have coincided with significant declines in the price of ETH. For instance, back in November 2021, the price of ETH tumbled 40% in only two months after the foundation transferred 20,000 ETH to Kraken.
In the last 24 hours, the price of ETH has decreased by 2%, with its current price sitting at $1,867. Additionally, its trading volume has witnessed an uptick, indicating interest from traders. However, the upcoming issuance of $1 trillion in Treasury bills by the US Treasury Department by the end of the third quarter could put selling pressure on both Bitcoin and Ethereum.
On the other hand, the deflationary nature of ETH’s price, due to its low supply, could work in its favor. ETH staking deposits on the Beacon Chain have reached an all-time high, with 24.17 million ETH worth $46.03 million staked. Moreover, the Ethereum balance on crypto exchanges has hit a new five-year low. This, coupled with low supply, might potentially drive the price of ETH to $2,500 in the next few months, contrary to predictions of a lower price.
While the recent ETH selloffs by key stakeholders raise concerns and uncertainty, it’s essential to consider the broader market conditions and other factors that may impact the price of Ethereum. Crypto enthusiasts should carry out thorough market research before investing in cryptocurrencies, as the content presented may include personal opinions of the author and is subject to market conditions. The author or the publication bears no responsibility for any personal financial losses.
Source: Coingape
