TLDR
- World Liberty Financial, a Trump-backed DeFi project, reportedly sold 5,471 ETH for $8.01 million at a loss
- The project previously spent $210 million to acquire 67,498 ETH at an average price of $3,259 per token
- World Liberty is currently facing an estimated unrealized loss of $125 million on its ETH investments
- A long-term Ethereum whale also sold 10,000 ETH for $15.71 million after holding for over 900 days
- Analysts predict ETH could find support at $1,200, with potential recovery after expected Fed rate cuts in May
World Liberty Financial, the DeFi project endorsed by Donald Trump and his family, has reportedly sold a portion of its Ethereum holdings at a loss. According to blockchain analytics firm Arkham, a wallet linked to the project sold 5,471 ETH worth approximately $8.01 million at a price of $1,465 per ETH.
This sale represents a major loss for the project, which previously spent $210 million to acquire 67,498 ETH at an average purchase price of $3,259 per token. With Ethereum currently trading around $1,400, World Liberty is facing an estimated unrealized loss of $125 million on its remaining holdings.
The sell-off comes as Ethereum has dropped 56.86% since the beginning of 2025. The second-largest cryptocurrency has broken through multiple support levels during this decline.
Whale Activity Signals Market Sentiment
World Liberty isn’t the only large holder liquidating Ethereum positions. A long-term Ethereum whale has also exited their position after holding 10,000 ETH for over 900 days, according to Arkham Intelligence.
This whale sold their entire ETH holdings for $15.71 million earlier today. The sale locked in a profit of $2.75 million on their initial investment of $12.95 million, made in October and November 2022 at an average price of $1,295.
The timing of the sale is particularly interesting. The whale continued holding when ETH touched $4,000, which would have represented a $27.6 million profit, but finally sold for much smaller gains.
These large sell-offs could potentially trigger additional selling pressure from retail investors. Market participants are closely watching for signs of a broader market reaction.
Broader Crypto Market Downturn
The struggles of World Liberty Financial and Ethereum are part of a larger crypto market downturn. Bitcoin has fallen over 20% since early February.
We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.…
— WLFI (@worldlibertyfi) February 3, 2025
Other major cryptocurrencies are experiencing even steeper declines. XRP and Cardano have each lost around 30% of their value.
Solana has been hit particularly hard, dropping almost 50%. Dogecoin is down approximately 47% as well.
TRON and Binance Coin have shown the most resilience among the top 10 cryptocurrencies during this market correction. However, they have not been immune to the overall bearish trend.
Analyst Predictions for Ethereum
Despite the current market conditions, some analysts see potential support levels and recovery scenarios for Ethereum. Crypto analyst Ali Martinez has identified $1,200 as a potential support level for ETH.
$1,200 could be where #Ethereum $ETH finds its footing! pic.twitter.com/ds0maPuHtA
— Ali (@ali_charts) April 8, 2025
Martinez suggests this price point could serve as a key area for Ethereum to regain stability. This support level could help prevent further decline in the short term.
Another analyst, known as “venturefounder,” believes Ethereum may be at or approaching its cycle bottom. The analyst speculates that ETH could reach its lowest point by the end of April.
The potential recovery may align with expected Federal Reserve actions. Venturefounder anticipates Fed rate cuts to come in May, possibly beginning another round of quantitative easing.
This liquidity infusion could help fuel an Ethereum rally in the coming months. However, many investors remain cautious given the current market volatility.
World Liberty Financial has faced other controversies beyond its crypto investments. The project has dealt with allegations regarding token sales and management.
However, World Liberty has strongly denied allegations of making unauthorized token sales or swaps. These controversies add another layer of complexity to the project’s current challenges.
Eric Trump, who serves as the project’s web3 ambassador, had previously expressed bullish sentiment toward Ethereum. Since those statements, Ethereum has fallen more than 40%, according to TradingView data.
The coming weeks will be crucial for World Liberty Financial, Ethereum, and the broader crypto market as investors watch for signs of stabilization or further decline.
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