Is Donald Trump’s DeFi Project Dumping Ethereum? ETH Price Remains Muted

World Liberty Financial, Donald Trump’s DeFi Project, moved a large number of Ethereum to Coinbase, in the past two days, stirring up anxiety among investors about a major ETH dump coming ahead. In a short period of time, the project has moved 75% of its ETH holdings leading to discussions on the matter. Despite a strong surge in the broader altcoin market, the ETH price movement remains muted as it flirts around $3,365 levels.

Is World Liberty Financial Dumping Its Ethereum Holdings?

In the last 48 hours, Donald Trump’s DeFi project World Liberty Financial deposited a total of 14,611 Ethereum (ETH), valued at approximately $47.34 million, to Coinbase. The deposits have happened at an average ETH price of $3,240. Blockchain analytics platform Spot On Chain recorded a recent transaction of 1,038 ETH ($3.44 million) roughly three hours ago.

Despite these significant movements, the fund still retains 5,111 ETH in its holdings, worth approximately $17.12 million at current market rates. These large transfers have drawn attention as ETH price trades near its key resistance levels in an increasingly active market. Earlier this week, reports also highlighted strong Ethereum whale dumping.

Trump’s DeFi Project Issues Clarification

Following the news of a probable Ethereum dump by Donald Trump’s DeFi project, World Liberty Financial has issued an official clarification. World Liberty Financial announced that it is making routine adjustments to its crypto holdings.

This is just part of its regular treasury management, addressing fees, expenses, and working capital needs, the firm stated. The company clarified that it is not selling ETH, but simply reallocating assets for standard business operations. In the official announcement, it noted:

“These actions are intended to be part of maintaining a strong, secure, and efficient treasury. No need to speculate—this is all standard practice for managing operations at WLFI”.

ETH Price Remains Muted Despite Altcoin Market Recovery

Despite the broader altcoin market moving ahead, the ETH price has shown a muted response. As of press time, the Ethereum price is trading flat at $3,365 levels with just a 5% bump in daily trading volumes. As per the Coinglass data, the 24-hour liquidations have shot up to $45 million of which $31 million is in long liquidations.

Popular crypto analyst Ali Martinez stated that Ethereum (ETH) may follow a similar pattern to its previous price movements. He noted that in mid-April, ETH consolidated around $2,800 for 37 days before advancing higher.

The analyst speculates that a similar consolidation could occur as the right shoulder of a head-and-shoulders pattern forms, per the below chart.