Ethereum’s price decline to $1,400 has raised concerns in the crypto market. This drop is linked to a significant sell-off by Donald Trump’s World Liberty Finance, which offloaded 5,471 ETH at a loss. The firm, previously known for accumulating Ethereum, has now incurred substantial unrealised losses. Despite a minor recovery, market sentiment remains bearish, indicating possible further declines ahead.
The Ethereum price has plunged to $1,400, leading to heightened volatility in the cryptocurrency market. This dramatic decline is linked to a significant sell-off by World Liberty Finance, a firm associated with US President Donald Trump, which may have catalysed Ethereum’s sharp drop in value.
Blockchain analytics platform Lookonchain reported on April 9 that World Liberty Finance, a decentralized finance initiative linked to Trump, recently disposed of a large quantity of Ethereum. The sell-off occurred just before Ethereum’s price decline, raising concerns about its potential influence on this unexpected downturn.
World Liberty Finance, launched in 2024, aims to challenge centralized banking and facilitate stablecoin adoption. Lookonchain indicates that the firm has shifted from accumulating Ethereum to selling a large portion of its holdings at a steep loss, signalling a potential strategy change.
Specifically, World Liberty Finance offloaded 5,471 ETH tokens worth approximately $8.01 million, executed at $1,465 each, a significant downturn from prior values exceeding $1,600. Previously, they had amassed 67,498 ETH at an average price of $3,259, resulting in an unrealised loss of around $125 million after the recent sell-off.
This sell-off amplifies the already unstable environment surrounding Ethereum, which has generated bearish forecasts of further price declines. While the reasons behind this sudden sell-off are unclear, speculations suggest it may have been prompted by Ethereum’s downward trend or could be interpreted as a signal of market bottoming.
Ethereum’s fall to $1,400 is unprecedented, marking its lowest point in seven years, also impacting other significant cryptocurrencies like Bitcoin. Although Ethereum has experienced a slight recovery, trading at $1,591 after a 7.44% increase, it still faces a 16.63% decline over the last month. Current technical assessments by CoinCodex reveal persistent bearish sentiment, indicating the potential for further price reductions.
