Ethereum Faces Criticism Amid Whale Sell-Off and Price Decline

Ethereum is facing renewed skepticism as Ether prices drop and a notable whale has begun selling off substantial amounts of ETH acquired during the 2014 initial coin offering.

Earlier today Lookonchain revealed that this Ethereum ICO participant has been actively liquidating their holdings, with approximately 19,000 ETH—valued at around $47.5 million—sold over the past two days alone. The selling activity, which began in late September, included an earlier transfer of over 12,000 ETH worth $31.6 million to Kraken.

Originally, this entity had accumulated 150,000 ETH during the ICO, which was worth about $46,500 back then but is now valued at nearly $400 million.

However, the price of ETH has plummeted around 10% since the beginning of October, dropping from $2,650 to an intraday low of $2,350—exceeding the broader crypto market’s decline.

This downturn has sparked renewed criticism, with some traders commenting on the alarming sales by long-time holders. Yet, supporters of Ethereum are pushing back against the FUD (fear, uncertainty, doubt), emphasizing the platform’s growth and potential.

Despite the recent selling pressure, institutional interest appears to be reviving, as evidenced by a nearly $20 million inflow into nine spot Ether ETFs on October 2, primarily led by BlackRock. This was a significant rebound following a major outflow the day before. Meanwhile, Bitcoin ETFs experienced consecutive outflows totaling $53 million.