Ethereum Co-Founder Transfers $262M in ETH to Kraken, Sparking Sell-Off Fears

Ethereum co-founder Jeffrey Wilcke has transferred 105,732 ETH, worth approximately $262 million, to crypto exchange Kraken—raising market concerns over a potential large-scale sell-off. Data from Arkham Intelligence revealed the transaction occurred at block height 22524638, with a minimal fee of 0.000063 ETH ($0.16). While it's unclear if the wallet had been dormant, the timing of the move—just as Ethereum rebounded 1.56% to $2,490.44—has surprised market watchers.

This substantial ETH movement has triggered speculation, as Kraken is a known liquidation hub for crypto whales. The transaction came shortly after Ethereum dipped to $2,452, highlighting the altcoin’s continued volatility. Despite staging a partial recovery, ETH remains under pressure, still below its recent high of $2,585 and down 3.26% over the past week.

The Wilcke transfer follows a trend of high-volume ETH movements involving major players like Justin Sun and the Ethereum Foundation. These whale activities are often viewed as signals of possible market shifts, especially when multiple large transfers occur in a short span. Some experts caution that if these actions continue, Ethereum could face further downward pressure.

Compounding uncertainty, the recent Pectra upgrade is reportedly losing traction amid concerns of a potential bug in EIP-7702. While the broader Ethereum market still enjoys deep liquidity, whale behavior remains a key factor to monitor.

Whether Wilcke’s transfer is for liquidation, custody, or another purpose remains unknown. However, with over $450,000 ETH reportedly moved by whales in the past month alone, investor sentiment may be swayed by fear of another price dip. As always, Ethereum’s price trajectory will largely depend on how the market digests such whale-driven movements in the days ahead.