World Liberty Financial Dumps 5,471 ETH – Is a Bigger Ethereum Crash Coming?

Donald Trump’s decentralized finance (DeFi) venture, World Liberty Financial, has sparked controversy by selling Ethereum (ETH) at a significant loss. The reports show that World Liberty Financial sold 5,471 ETH worth $8.01 million ahead of the ETH price drop to $1,400. The decrease of Ethereum by 56.86% from the beginning of 2025 appears to decrease confidence among institutional investors. Increasing losses in Ethereum prices create uncertainties about its future market direction.

World Liberty Financial Offloads Ethereum Amid Bearish Market

World Liberty Financial, Donald Trump’s DeFi initiative, has been selling its Ethereum (ETH) shares at a significant loss. A wallet connected to the project was monitored by blockchain analytics company Arkham Intelligence, which revealed that 5,471 ETH were sold for $1,465 each, for a total of $8.01 million.

World Liberty Financial used $210 million to buy 67,498 ETH tokens with an average cost of $3,259 per token before this acquisition. The project currently bears $125 million of unrealized loss because ETH trades so much lower than the initial purchase price. The marketwide concerns for Ethereum’s future stability have driven this major selling trend.

Long-Term Ethereum Holders Also Exit Their Positions

The World Liberty Financial sell-off follows the trading behavior of Ethereum investors who maintain holdings for extended periods. After holding 10,000 Ethereum for more than 900 days, a well-known Ethereum whale just sold their holdings. According to Arkham Intelligence data, the whale made a $2.75 million profit when they sold their shares for $15.71 million.

After holding $ETH for over 900 days, a whale finally capitulated — selling all 10,000 $ETH($15.71M) today.

The whale originally bought 10,000 $ETH($12.95M) at an average of $1,295 on Oct 4 and Nov 14, 2022.

He didn't sell when $ETH broke through $4,000.

But today, he exited… pic.twitter.com/KY7TZ02az4

— Lookonchain (@lookonchain) April 8, 2025

Initially, the investor purchased 10,000 ETH for $12.95 million at an average of $1,295 per ETH in late 2022. The whale eventually sold out at a smaller gain, even though they held through Ethereum’s high above $4,000, where their unrealized profit approached $27 million. With major players exiting, retail investors now fear a broader market dump.

Chart 1 – Chart by Ali Martinez, published on Trading View, April 8, 2025

The Ethereum prices stepped down while bears continuously disrupted crucial support areas throughout 2025. Ali Martinez, who is an influential crypto analyst predicts Ethereum will find support at the $1,200 level. Should ETH fail to hold this level, further downward movement may be inevitable.

Will Ethereum Recover or Face Further Declines?

The sustainable existence of Ethereum faces uncertainty in the upcoming period. Experts predict that ETH will reach its cycle floor price whereas $1,200 stands as the decisive support point for its upcoming bottom. By the end of April, according to market analyst Venturefounder, ETH may hit its lowest point. 

A new round of quantitative easing (QE) and possible rate cuts by the Federal Reserve in May, however, would bring liquidity to the market and raise ETH prices. For now, Ethereum faces immense selling pressure, and institutional exits are fueling further bearish sentiment. ETH could find it difficult to recoup its previous strength if bullish catalysts fail to emerge.

Conclusion: What is Next for Ethereum?

So, what is next for Ethereum? World Liberty Financial’s major Ethereum sell-off indicates that the cryptocurrency market is becoming increasingly uncertain. The coming weeks will be critical as institutional investors pull out and ETH struggles to maintain critical support near $1,200. If buying momentum returns, a rebound is possible, especially with potential Fed rate cuts. However, sustained bearish pressure could drive ETH deeper into losses, leaving investors questioning its long-term stability.