Ethereum Co-Founder Dumps $262M in ETH—Is a Market Panic Coming?

A whale just made waves—and not the good kind. One of Ethereum’s founding devs just moved a jaw-dropping $262 million worth of ETH, triggering sell-off alarms across crypto Twitter.

Timing is everything: The transfer comes as ETH struggles to hold key support levels. ’Smart money’ or smart exit? Either way, the market’s sweating bullets.

Bonus cynicism: Nothing says ’confidence in the ecosystem’ like cashing out a small country’s GDP. But hey—maybe they just really needed a 27th yacht.

TLDR

• Ethereum cofounder Jeffrey Wilcke transferred 105,736 ETH worth $262 million to Kraken.
• The large transaction caused Ethereum’s price to fall by nearly 2 percent within minutes.
• On-chain data showed that eight new wallets received the same amount of ETH after the transfer.
• Analysts suggest the move may indicate a custody change rather than a planned sell-off.
• Ethereum’s exchange supply has dropped to a record low of 4.9% of total circulation.

Ethereum has come under pressure after its cofounder Jeffrey Wilcke moved 105,736 ETH to crypto exchange Kraken. The transaction, valued at $262 million, triggered concerns of a potential large-scale sell-off. Ethereum (ETH) dropped nearly 2% within minutes of the transfer, raising questions about the asset’s short-term direction.

Jeffrey Wilcke Transfers ETH to Kraken Exchange

Jeffrey Wilcke sent 105,736 ETH to Kraken, raising alarms due to the sheer size of the transaction. ethereum reacted instantly as prices slipped from $2,520 to $2,482 within minutes of the wallet movement. The transfer mirrors a similar action in late 2024, when he moved a large amount to Kraken before ETH declined.

Jeffrey Wilcke, the Co-founder of #Ethereum, deposited 105,737 $ETH($262M) into #Kraken ~30 minutes ago, which is almost all of his $ETH.

The last time he deposited $ETH into #Kraken was on Nov 28, 2024, when the price of $ETH was $3,625.https://t.co/zpn5xD3p22 pic.twitter.com/DVbq4z4zfM

— Lookonchain (@lookonchain) May 20, 2025

Although the market responded negatively, on-chain analysts noted that eight new wallets received exactly the same amount of ETH. This movement occurred shortly after the Kraken deposit, indicating that the assets might not have been sold. Analysts speculate that this could be a change in custody or an internal transfer for reallocation purposes.

Despite the past association with price drops, this latest transaction might not indicate liquidation. The ETH remains traceable across new wallets, offering transparency around its status. Yet, Ethereum’s price has still felt the pressure from this high-profile transfer.

Ethereum Exchange Supply Hits Record Low

Ethereum supply on centralized exchanges has hit a record low of 4.9%, showing a continued shift to non-custodial storage. Over 1 million ETH has moved off exchanges recently, suggesting less immediate selling pressure in the broader market. However, Wilcke’s Kraken transaction runs contrary to this broader trend.

The ETH sent to Kraken by Wilcke comprised nearly all of his publicly known holdings. This action coincided with a spike in on-chain activity and sudden changes in trading volumes. Yet, the simultaneous appearance of matching new wallet holdings suggested possible custodial restructuring.

While Ethereum’s circulation on exchanges continues to drop, short-term price moves remain highly sensitive to such transfers. Sentiment often turns bearish whenever cofounders or large holders shift their assets. But the long-term exchange data shows increasing preference for private wallet usage.

Ethereum Faces Key Resistance Amid Market Volatility

Ethereum trades below the $2,500 mark, facing stiff resistance after recent market fluctuations. A CryptoQuant analysis shows that trading volume surged significantly as the price approached this level. This signals heightened market activity and potential profit-taking around the resistance zone.

To move toward $3,000, Ethereum must close above the $2,500 barrier and sustain upward momentum. The Wilcke transaction added short-term uncertainty, but price movement will depend on broader market reactions. Volume levels remain elevated, indicating active trading but not necessarily signaling a mass sell-off.

Ethereum’s recent Pectra upgrade aimed at lowering LAYER 2 fees failed to boost user engagement on the network. A Glassnode report highlighted this, suggesting that network fundamentals have yet to reflect the technical improvements. Still, Ethereum remains the second-largest cryptocurrency, continuing to draw global attention amid key developments.