Key Insights:
- Ethereum co-founder moved 105,736 ETH ($262M) to Kraken, triggering market-wide sell-off concerns.
- ETH dropped nearly 2% after Wilcke’s transfer, now trading at $2,582.23 amid market volatility.
- Only 4.9% of ETH supply remains on exchanges, signaling low liquidity despite increased whale activity.
Ethereum (ETH) faced renewed pressure this week after co-founder Jeffrey Wilcke transferred over $262 million worth of ETH to Kraken. The move raised concerns of a potential sell-off and added to existing market volatility.
Ethereum Price Dips After 105,736 ETH Transfer
At press time, ETH traded at $2,582.23 after falling nearly 2% following Wilcke’s transaction. On-chain data confirmed that 105,736 ETH had been deposited into Kraken, equivalent to $262 million.
The last time Wilcke made a similar move in 2024, ETH dropped from $3,625 to under $2,000.
Lookonchain flagged that eight new wallets received similar amounts of ETH after the transfer. Some traders believe the transaction may involve internal custody changes, but caution remains elevated.
Technical Indicators Show Weakening Short-Term Momentum
Several technical indicators suggest the short-term outlook for the Ethereum price is weakening. The Parabolic SAR now stands at $2,722, above the current price level, which indicates the trend is no longer clearly bullish. Ethereum has also been recording lower highs, a pattern that typically reflects declining buyer interest.
Further, the Relative Confidence Index (RCI) is showing a bearish divergence. While longer-term metrics remain positive, the short-term RCI value has dropped to -36.97. This divergence reflects a shift in sentiment, with traders becoming more cautious amid recent volatility and whale activity.
The $2,339 support level is now a critical line for bulls to defend. It represents a previous area of strong demand and a high-volume trading zone. If Ethereum falls below this point, analysts expect selling pressure to accelerate, potentially pushing the price toward $2,100.
Derivatives Market Reflects Caution Despite Long Position Bias
Ethereum derivatives data suggests mixed market conditions. Open interest in ETH futures increased by 1.72% to $30.94 billion, showing continued engagement. However, futures trading volume dropped by over 34%, suggesting that many traders are adopting a wait-and-see approach.
The options market followed a similar pattern. While open interest remained steady near $7.69 billion, volume declined by 32.62%. Traders appear to be holding current positions instead of entering new trades, reflecting uncertainty around short-term Ethereum price direction.
Liquidation activity also reveals cautious positioning. In the last 24 hours, $64.37 million in ETH positions were liquidated. Of this, $35.46 million came from long positions and $28.90 million from shorts. The largest losses occurred in the last 12 hours, with long liquidations contributing the most, signaling elevated risk.
ETH Supply on Exchanges Drops Amid ETF and Macro Uncertainty
At the time of his transfer, ETH’s active exchange supply reached a historical low point. Nearly all of Ethereum’s supply or 95.1%, is now in the hands of its users, as more ETH has been withdrawn from centralized platforms into personal wallets.
Limiting the immediate selling pressure could happen, but at the price of lower liquidity. Market uncertainty is also being driven by Fed interest rate news and the SEC’s upcoming evaluation of ETF applications from altcoins in June.
Ethereum is trading a bit below $2,500, its main price barrier. Indicators are still supporting the rise as long as the value stays over $2,300. Nevertheless, the prospect of selling, especially with big deals such as Wilcke’s, continues to sway short-term feelings.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
