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.

A cofounder of Ethereum has reportedly moved almost all of his ETH to the Kraken exchange.

On-chain data shows that Jeffrey Wilcke transferred 105,736 ETH, currently valued at $262 million, to Kraken. The large-scale movement of ETH to a centralized exchange has sparked speculations of a mass sell-off.

However, a closer look at the movement of funds suggests otherwise. Minutes after the Kraken deposit, eight new wallets received 105,736 ETH, indicating a change in custody.

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

Earlier reports indicate that the amount of ETH on exchanges has reached its lowest point in 2024. Data from on-chain shows that only 4.9% of the altcoin’s circulating supply is on exchanges, with over 1 million tokens being moved to non-custodial wallets.

ETH Is Facing Headwinds Ahead Of $2,500 Resistance Level

The ETH price is approaching the $2,500 resistance level, but it must overcome several obstacles. The deposit of 105,736 ETH by the Ethereum cofounder has put downward pressure on the recovering asset.

Ahead of the push toward $2,500, an analysis by CryptoQuant highlights that the altcoin’s trading volumes have surged due to users quickly taking profits. However, the asset must 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, characterized by a significant surge in trading volume,” stated an analysis by CryptoQuant.

The ETH price is currently trading at $2,482 as investors prepare to challenge the $2,500 resistance. Despite the Ethereum Pectra upgrade setting the stage for lower L2 fees, a report by Glassnode mentions that the upgrade did not result in increased network engagement.