Surrounding the speculation of a possible Ethereum (ETH) market correction, Ethereum co-founder Jeffrey Wilcke has moved a large $75.2 million worth of Ether (ETH) to the centralized crypto exchange Kraken.
Wilcke transferred 20,000 ETH to Kraken, depositing on chain it did not specify what the funds were for. It’s that if large transfers to exchanges are made, this usually signals an intent to sell and an action that usually has the market reacting.
Ethereum Price Drops Often Follow Wilcke’s Transactions
Community members have recently scrutinized Wilcke’s trading activities because they sometimes coincide with declines in Ethereum’s price. Ethereum’s price dipped on January 6, 2021, after Wilcke deposited 15,000 ETH. And in more recent times, on February 11, 2024, his $4,300 ETH and $10,000 ETH transfers each saw a price drop too.
Yet, far from an investor being forced to liquidate their whole position in ETH to offset losses, Wilcke still had a long way to go, as they were still holding on to a total of 106,000 ETH worth around $384 million in value, according to blockchain analytics platform LookOnChain.
This transfer has stoked arguments about who leads Ethereum and why they hold so much ETH. Last month, the Ethereum Foundation sold 4,266 ETH, worth more than $12 million, which prompted backlash from the community. Nonprofit was accused of profits from its reserves.
Ethereum’s co-creator, Vitalik Buterin, came out to defend the criticism, saying the sales they were funding were just projects and operational costs. The foundation’s annual report says the bulk of its resources went towards developing the Ethereum ecosystem and supporting decentralized finance (DeFi) projects.
Ethereum’s price is recovering, and the latest deposit should add to that. The bigger the crypto market will be in the wake of the U.S. general elections on November 6, as crypto rallied to a total valuation of $3.4 trillion. Ethereum’s price rose above $3,550, a 28% drop from its all-time high of $4,878.
With Wilcke’s transaction now analyzed by market participants, the big question remains: is this a sign of an imminent correction or a standard liquidity move by one of the key figures on the Ethereum market?
Wilcke’s actions throw more support on how important influential characters and organizations in the crypto space have on market dynamics. Some argue the transactions are strategic, while others are skeptical of the possibility they may destabilize prices.
The crypto community takes Wilcke’s deposit as a signal that the history will repeat itself and the price will go down.
