- Trump-associated wallet dumps 5,471 ETH, realizing $8M at a loss.
- A long-term whale exits 10,000 ETH position amid market panic.
- Ethereum plunges 56% in 2025, testing $1,200 support zone.
Ethereum’s steep decline has been sharply accelerated by back-to-back major sell-offs. A wallet linked to Donald Trump’s DeFi project, World Liberty Financial, liquidated thousands of ETH below break-even, indicating institutional unease.
Despite a brief surge earlier this year, ETH’s failure to sustain above $1,400 highlights deteriorating investor sentiment. The sell-offs came despite missed profit opportunities near $4,000, suggesting that global uncertainty and mounting losses have pushed long-term holders toward exit decisions — eroding confidence further.
Ethereum’s 2025 Crisis Deepens: Whale Exodus, Trump DeFi Project Raise Alarm Bells
Ethereum has now dropped nearly 57% since the start of 2025, falling below $1,400. The crypto market was jolted when a whale, who had held 10,000 ETH since the 2022 bear market, exited their position, suggesting even seasoned investors are growing skeptical of a near-term recovery. The panic was worsened by missed sell opportunities during Ethereum’s recent highs.
The other bombshell came from World Liberty Financial — a DeFi project allegedly tied to Donald Trump — which offloaded 5,471 ETH at a significant loss. The wallet, which bought ETH at an average of $3,259, signaled an alarming institutional selloff and triggered fresh market fear. This transaction alone may have contributed to over $125M in unrealized losses for the entity.
Technical indicators such as the MACD death cross further support the bearish trend, showing reduced momentum and a lack of buying interest. Analysts now focus on the $1,200 support level, with a breach possibly pushing ETH toward the $1,000 psychological floor. On-chain data shows a rise in dormant wallet activity — historically a precursor to market capitulation.
The Ethereum ecosystem is now at a tipping point. Long-term holders are exiting, macroeconomic uncertainty is rising, and investor optimism is waning. Without a reversal in sentiment or a bullish catalyst, Ethereum may struggle to regain its footing in Q2 2025.
The recent Ethereum plunge reflects a growing crisis of confidence, and unless support holds at $1,200, a deeper correction may be inevitable.
“The market is not only ruled by numbers but also by psychology — and fear is clearly winning.” – Crypto Analyst Ali Martinez
