Ethereum Cofounder Moves 105,736 ETH To Kraken; Is A Sell Off Ahead?

Ethereum cofounder Jeffrey Wilcke has triggered a wave of pessimism for ETH after a hefty asset transfer to Kraken. On-chain data reveals that Wilcke moved 105,736 ETH to Kraken, stoking concerns of a mass sale, but a closer look paints a benign picture.

Investors Raise Eyebrows After An Ethereum Cofounder Transfers 105,736 ETH

Jeffrey Wilcke, one of Ethereum’s eight cofounders, has moved almost all of his ETH holdings to the Kraken exchange. According to on-chain data, the Ethereum cofounder transferred 105,736 ETH valued at $262 million at current prices.

The movement of a sizable amount of ETH to a centralized exchange has raised eyebrows, with sell-off concerns reaching a fervent pitch. At the moment, the bearish signal has gained momentum with ETH prices tumbling by nearly 2% within minutes of Wilcke’s Kraken transfer.

This is not the first time Wilcke has been whipping up bearish sentiments in the markets with his ETH transfers. Back in late 2024, the ETH cofounder deposited a sizable amount of ETH in Kraken at $3,625 before the steady decline below $2,000.

For now, investors have their eyes peeled on ETH price action for confirmation of a sell, but a closer look at the movement of funds suggests otherwise. Minutes after the Kraken deposit, eight new wallets gobbled up 105,736 ETH in a move pointing at a custody reshuffling.

“It is possible that Jeffrey Wilcke did not intend to sell ETH, but just transferred them to other wallets,” said Lookonchain on X.

Reports of Wilcke’s transferring his holdings to Kraken come amid ETH supply reaching its lowest on exchanges. Onchain data indicates that only 4.9% of the altcoin’s circulating supply is on exchanges, with over 1 million tokens moved to non-custodial wallets.

ETH Faces Headwinds Ahead Of $2,500 Resistance Level

The ETH price is inching toward the $2,500 resistance level, but it has to soar past a series of hurdles. Firstly, the deposit of 105,736 ETH by the Ethereum cofounder has triggered downward pressure on the recovering asset.

Ahead of the push toward $2,500, a CryptoQuant analysis notes that the altcoin’s trading volumes have spiked, buoyed by a frantic rush for profit taking. However, the asset will have to break through the $2,500 resistance point for the ETH price to reach $3,000.

“Ethereum’s approach to the critical $2.5K resistance level has led to overheating, characterised by a significant surge in trading volume,” read a CryptoQuant analysis.

The ETH price currently trades at $2,482 at press time as investors brace themselves to challenge the $2,500 resistance mark. Despite the Ethereum Pectra upgrade setting the stage for lower L2 fees, a Glassnode report notes that the upgrade failed to translate into a spike in network engagement.