The price of Ethereum (ETH) has dropped sharply in 2025, now hovering near $1,400, and the impact is being felt even among large institutional players. World Liberty Financial, a decentralized finance initiative reportedly backed by Donald Trump, has begun selling off its ETH holdings at a significant loss, according to data from Arkham Intelligence.
A wallet believed to be connected to the project offloaded 5,471 ETH, valued at approximately $8.01 million, at an average price of $1,465 per token—a steep drop from their original purchase levels. The sale took place just four hours ago, further fueling bearish sentiment across the crypto market.
World Liberty’s Ethereum Losses Total Over $125 Million
In previous reports, World Liberty Financial was said to have purchased 67,498 ETH for around $210 million, with an average acquisition cost of $3,259 per ETH. With current market prices well below the entry point, the DeFi firm is sitting on an unrealized loss of nearly $125 million.
This move underscores growing skepticism among institutions regarding Ethereum’s short-term potential. The ongoing selloff suggests that confidence in the asset is weakening, even among major backers.
Ethereum Whales Are Also Jumping Ship
It’s not just institutions losing hope. Long-term holders are also exiting the market. A major Ethereum whale who held 10,000 ETH for over 900 days has officially liquidated their position.
According to Arkham Intelligence, the investor sold their full stake for $15.71 million, booking a $2.75 million profit. The whale had originally purchased the ETH for $12.95 million, split between two transactions in October and November 2022.
Interestingly, the investor chose to hold their position even when ETH spiked to $4,000, where they were once up over $27 million. The decision to sell now, at a smaller gain, signals a potential shift in sentiment that could spark broader retail sell-offs.
Will Ethereum Find Support at $1,200?
With Ethereum down 56.86% since January 2025, analysts are now searching for signs of a bottom. Ali Martinez, a widely followed crypto analyst, has identified $1,200 as a critical support level that could offer temporary price stability.
Another market expert, venturefounder, believes ETH may be approaching its cycle bottom, predicting a potential bottom by late April. However, he also anticipates that Federal Reserve interest rate cuts and the possible reintroduction of quantitative easing (QE) in May could inject fresh liquidity into the markets—potentially sparking a relief rally for Ethereum.