Ethereum’s Value Declines after Co-Founder Sells Off, Causing Unease Among Traders
March 8, 2026
Ethereum, one of the leading cryptocurrencies, experienced a 2.31% decline in its price over the past 24 hours, dropping to $1,936.64 on Sunday. This downturn was part of a broader negative trend in the cryptocurrency market, prompted by a substantial sell-off by one of Ethereum’s co-founders. The transfer of approximately $157 million worth of ETH to Kraken by co-founder Jeffrey Wilcke raised concerns about additional selling pressure exacerbating the already delicate ETH market situation.
Market data revealed that Wilcke transferred a total of 79,258.61 ETH, equivalent to about $157 million, through four addresses after seven months of dormancy, with around 27,422 ETH left in his wallet. Known for creating the Geth client, Wilcke has been disengaged from active development and has a history of sporadically moving significant portions of his early-allocated ETH to Kraken for sale. While indicators from on-chain and exchange data suggest a potential sale by a major holder, it is important to note that the transfer itself does not confirm the complete sale of all coins on the market.
This transaction occurred as Ethereum was trading below the psychologically significant $2,000 level. Analysts are keeping a close eye on support levels in the $1,850–$1,900 range and resistance in the $2,000–$2,080 range. Furthermore, spot ETH ETFs witnessed notable net outflows, including approximately $82–83 million in a single day, with a major fund losing over $67 million in a single session.
In a similar trend, co-founder Vitalik Buterin recently sold around $17,000–19,000 ETH, amounting to about 7% of his holdings. This divestment adds to the narrative of co-founders reducing their exposure to Ethereum. Despite the $157 million transaction being relatively small compared to Ethereum’s total market capitalization and daily trading volume, sales by well-known co-founders tend to have a more substantial impact on market sentiment than transactions by anonymous whale accounts.
Wilcke’s transfer signals a significant move by a co-founder, stirring unease among traders. However, the long-term implications for Ethereum will depend on how quickly these coins are sold, how ETH performance aligns with key support levels, and whether the flow of funds from ETFs and institutions strengthens or continues to decline in the days ahead. This development underscores the interconnected nature of cryptocurrency markets and the impact that key stakeholders can have on market dynamics.
