Ethereum Tanks Below $1.5K as Trump-Linked Wallet Dumps ETH at 55% Loss — Analysts Warn of $1.2K Support Test

World Liberty Financial Inc. (WLFI), a wallet linked to a Trump-affiliated group, has offloaded a substantial amount of Ethereum at a significant loss. The sale, which saw WLFI liquidate 5,471 ETH for about $8 million, raised eyebrows due to both its size and the timing. This latest transaction, made at an average price of $1,465 per ETH, represents a nearly 55% loss from the price WLFI originally paid for its holdings.

The company had initially purchased 67,498 ETH for around $210 million, with an average purchase price of $3,259 per coin. Given Ethereum’s current price of $1,472, WLFI now finds itself sitting on an unrealized loss of approximately $125 million. The sale itself alone resulted in a $7.9 million loss.

The decision to offload such a large amount of Ethereum at a steep discount has sparked speculation. Some analysts suggest the move could be a strategic portfolio rebalancing or an effort to free up cash. Others believe it could be a reaction to the ongoing volatility in the crypto market.

However, WLFI is not alone in making significant Ethereum moves. A notable Ethereum whale also sold 10,000 ETH for a $2.75 million profit, despite initially holding the asset through Ethereum’s rally to $4,000. This move indicates that even long-term holders are adjusting their positions amidst the market downturn. Other whales have been forced to make drastic moves, such as injecting $14.5 million to protect a 220,000 ETH position from liquidation, while another whale faced a $106 million loss after a DeFi liquidation event.

These actions by major players have left everyday investors on edge, wondering whether they signal the beginning of a broader market sell-off. Crypto analyst Ali Martinez has suggested that the $1,200 level could act as a key support for Ethereum, providing some hope for stabilization amidst the ongoing price decline. Ethereum has dropped more than 56% since the start of the year, and the market remains on high alert for any further movements from large holders.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Solana (SOL) to $60? XRP and ETH Also at Risk, Warns Analyst Jason Pizzino

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.