The recent Ethereum price crash to $1,400 has sent shockwaves through the crypto market, creating a wave of uncertainty and volatility. This significant drop in price was fueled by a major sell-off of ETH by US President Donald Trump’s World Liberty Finance, a decentralized finance protocol linked to Trump.
According to blockchain analytics platform Lookonchain, World Liberty Finance recently offloaded a substantial amount of Ethereum, totaling 5,471 ETH tokens valued at around $8.01 million. This sell-off was executed at a price of $1,465 per ETH, representing a significant loss compared to its previous value. The move by World Liberty Finance, which was previously accumulating Ethereum, has raised concerns within the crypto community about a potential shift in strategy.
The wallet address associated with World Liberty Finance had accumulated a total of 67,498 ETH at an average price of $3,259, amounting to a total investment of $210 million. With the recent sell-off, the entity is now facing an unrealized loss of approximately $125 million. This unexpected move has added to the uncertainty surrounding Ethereum’s future trajectory, as the cryptocurrency’s recent price crash has led to bearish predictions of further decline.
The reason behind World Liberty Finance’s sudden ETH sell-off remains unclear, with speculation ranging from reacting to Ethereum’s price decline to signaling a market bottom. The market turmoil has not only affected Ethereum but also other major cryptocurrencies like Bitcoin, highlighting the overall volatility in the crypto space.
Despite the recent recovery of Ethereum to $1,591 after a 7.44% jump, the cryptocurrency has still experienced a 16.63% drop over the past month. Technical indicators suggest that sentiment towards Ethereum remains bearish, hinting at potential further declines in the near future.
In conclusion, the Ethereum price crash and World Liberty Finance’s sell-off have added a new layer of uncertainty to the crypto market. Investors and traders are closely monitoring the situation to gauge the potential impact on Ethereum’s future performance. Stay tuned for more updates on this developing story.