Crypto Market Updates: Trump-Linked Wallet Offloads Ethereum, Sparks Fears of 30% ETH Price Drop

On April 9, 2025, World Liberty Financial Inc. (WLFI), a Trump-linked entity, sold 5,471 Ethereum (ETH) tokens at $1,465 each, generating $8.01 million. The move, however, came at a steep cost. According to Arkham Intelligence, WLFI originally acquired these tokens at an average price of $3,259, leading to a staggering realized loss of approximately $125 million.

This major sell-off highlights the mounting pessimism surrounding Ethereum and the broader crypto market, particularly as April has already seen ETH plunge nearly 30%, with prices briefly touching $1,385.

Crypto Market Sentiment: Risk-Off Mode Activated

WLFI’s decision to sell such a large portion of ETH in the middle of a price decline suggests a definite shift into a risk-off environment. Persisting geopolitical tensions, including Trump’s potentially antagonistic global tariff stance, as well as the argument that a U.S. recession is on the horizon, are weighing down short-term investor confidence even further.

This kind of on-chain behavior by high-profile wallets typically shakes market sentiment. Traders often interpret such moves as institutional or politically connected capitulation, prompting further caution or panic selling.

ETH Price Under Pressure: $1,400 Support Being Tested

Ethereum is currently flirting with an important level of support. Cryptocurrency strategist Ether Wizz’s technical analysis recognized $1,400 as a major level that has historically acted as a fortress for buyers. However, ETH has already traded down to $1,385, and thus has left that support level vulnerable.COINCIDENTALLY, the ETH/USD chart has demonstrated a clear double-top (signaling a possible bearish reversal) at or near the $4,100 level, and if ETH were to confidently print below $1,400, Ether Wizz says the next destination could be to the next whole $1,000 or psychological level, and prior bear-market bottom, at $1,000.

From 67,000 ETH to 7,900 ETH: WLFI’s Exit Strategy?

WLFI’s Ethereum holdings have seen a dramatic decline over recent months. As of February 3, the wallet held approximately 67,000 ETH. As of April 9, that figure had dwindled to 7,900 ETH—indicating an aggressive de-risking strategy amid market uncertainty.

This continuous offloading suggests that WLFI may be realigning its crypto exposure or responding to broader macroeconomic cues that signal rough waters ahead for digital assets.

Controversy Surrounds Eric Trump’s ETH Endorsement

Adding fuel to the fire are allegations of market manipulation. Eric Trump, son of Trump, recently encouraged his 5.7 million X (formerly Twitter) followers to “add ETH” to their portfolios. Ironically, since his public support, Ethereum has halved in value.

Moreover, WLFI reportedly purchased $20 million in ETH just days before the March 7 White House Crypto Summit—raising eyebrows over potential insider trading and conflicts of interest, especially in light of Trump’s new stablecoin project, USD1.

Conclusion: Trouble Brewing for Ethereum?

Ethereum is faced with a challenging route ahead, as whales are offloading large amounts of ETH, geopolitical tensions are escalating, and key technical levels are at risk. If the $1,400 support fails, the next leg down could have ETH testing the critical $1,000 level which would be a significant correction from the highs of 2024.As always, we remind crypto investors to be vigilant and cautious when it comes to rapidly changing market developments.

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