Ethereum Plummets 16.63% After World Liberty Finance Sell-Off

Ethereum's price plummeted to $1,400, causing significant turmoil in the cryptocurrency market. This dramatic decline followed a substantial sell-off of Ethereum by World Liberty Finance, a decentralized finance protocol associated with former US President Donald Trump. The sell-off, which occurred just before the price crash, has raised questions about its role in the sudden decline of Ethereum's value.

World Liberty Finance, established in 2024, is a digital asset firm aimed at challenging centralized banking systems and promoting the use of stablecoins. According to blockchain analytics platform Lookonchain, World Liberty Finance had been accumulating Ethereum at lower prices but recently sold a large portion of its holdings at a significant loss. The sell-off involved 5,471 ETH tokens, valued at approximately $8.01 million, executed at a price of $1,465 per ETH, down from its previous value of over $1,600.

This move by World Liberty Finance has sparked curiosity within the crypto community, as it marks a departure from their previous strategy of large-scale Ethereum accumulation. Lookonchain's data indicates that the wallet linked to World Liberty Finance had accumulated a total of 67,498 ETH at an average price of $3,259, resulting in a total expenditure of $210 million. At the sell-off price, this leaves the entity with an unrealized loss of around $125 million. The recent sell-off has added to the uncertainty surrounding Ethereum's future, with some predicting continued decline and others suggesting it could signal a market bottom.

Ethereum's price drop to $1,400 was a significant event, marking the first time the cryptocurrency had fallen to such a low level in seven years. The decline affected not only Ethereum but also other major cryptocurrencies like Bitcoin. Currently, Ethereum is showing signs of recovery, trading at $1,591 after a 7.44% jump. However, its value has still decreased by 16.63% over the past month. Technical indicators suggest that sentiment surrounding Ethereum remains bearish, indicating potential further declines.