The post Ethereum Sell-Off: WLF Dumps ETH at 55% Loss, Whales Exit Amid Market Crash appeared first on Coinpedia Fintech News
World Liberty Financial has reportedly sold a significant amount of Ethereum at nearly 55% loss. The wallet linked to Trump-affiliated group’s unrealised loss now stands at around $125 million raising speculations over its move across the market.
Notably, as per data from Arkham Intelligence, the wallet moved over 5,471 ETH for approximately $8 million. The sale took place at an average price of $1,465, which is far below its original purchase price. This move has raised questions over why the entity would choose to sell the tokens at such a substantial loss.
Previously, WLFI had bought 67,498 ETH for about $210 million, at an average price around $3,259 for each ETH. However, with Ethereum’s current prices at significantly low levels, the company stands at an unrealized loss of about $125 million.
This implies that WLFI lost nearly 55% on the sale, selling it for just $8.01 million, less than about $7.9 million than what they originally paid for it. While some believe that the sale could be a strategic move to rebalance its portfolio or free up the capital, others may see it as a sign of panic amidst market chaos.
Are Long Term Whales Losing Interest?
Furthermore, the long term Ether whales also seem to have lost interest as in another news, a prominent ETH whale has exited the market as it sold 10,000 ETH after holding it for over 900 days, at a profit of $2.75 million. Notably, the whale bought 10,000 ETH in two separate transactions during October and November 2022, spending $13 million at an average price of $1,295 per coin.
What’s more intriguing here is that the whale continued to hold Ethereum at $4000 levels, with a profit over $27 million, and finally decided to settle down at lesser profits.
Two other whales also made major moves as one whale had to pump in over $14.5 million to protect a massive 220,000 ETH position from liquidation. While another whale lost 67,570 ETH (worth $106 million) after their DeFi position on lending platform Sky got liquidated.
With major whale moves and entities like WLF offloading its holdings, investors carefully gauge the market conditions and whether these moves could trigger a broader retail sell-off.
Analyst Notes Key Support Level
In a recent X post, crypto analyst Ali Martinez has pointed towards $1,200 as a key support level for Ethereum. As the market slides, he believes that this price could help ETH stabilize and prevent a deeper drop.
Meanwhile, Ethereum faces continued losses as it currently trades at $1,472, down over 6% in the past day. Despite expectations of a massive crypto rally post Trump coming into the office, Ethereum has witnessed a drop over 56% since the start of the year.
