- A wallet linked to Joseph Lubin moved 80,001 ETH worth $121M after more than three years of inactivity.
- Traders are debating whether the transfer signals a potential ETH sale or routine collateral management.
- Ethereum remains under pressure as analysts warn key support levels are weakening amid the market downturn.
Ethereum’s recent price drop has drawn attention to a large wallet transfer linked to Ethereum co-founder Joseph Lubin. Some traders are wondering whether one of Ethereum’s earliest supporters is preparing to sell as ETH experiences one of its toughest periods in years.
Blockchain analytics platform Lookonchain reported that a wallet linked to Lubin, which held 243,300 ETH worth about $370 million, moved 80,001 ETH valued at roughly $121.6 million. Notably, the wallet had been inactive for more than three years.
Dormant Wallet Becomes Active
The transfer caught the crypto community’s attention because of its size and the wallet’s long period of inactivity.
Lookonchain questioned whether Lubin might be preparing to sell ETH. However, there is currently no evidence indicating where the funds were sent or how they will be used.
Market analyst Mozi Tenma said traders should watch derivatives markets for more clues. According to Tenma, moving 80,001 ETH from a wallet that had been inactive for over three years looks more like a possible exit than a normal accumulation move.
He also noted that perpetual futures funding rates on Hyperliquid were already negative, meaning long-position traders were being paid to keep their trades open.
Tenma suggested the market may have anticipated the transfer before it appeared on-chain. He warned that sentiment could change quickly if the $121 million worth of ETH eventually reaches spot exchanges.
Community Divided on the Transfer’s Purpose
Not everyone believes the transfer signals a sale. X user Mehdi96 argued that the funds may have been moved for collateral management or to reduce liquidation risk rather than to sell ETH.
The commentator pointed to recent discussions by Vitalik Buterin on Ethereum Research about lending models that rely on options instead of debt structures that can be liquidated during market downturns.
Under this theory, the transferred ETH may have been used to strengthen borrowing positions or improve risk management during a volatile market.
Technical Breakdown Adds Bearish Pressure
The transfer comes as Ethereum’s price structure shows signs of weakness. Crypto analyst Rekt Capital said ETH has fallen below a multi-year uptrend line that had supported the asset for years.
The analyst noted that Ethereum has returned to a key support area for the first time since early 2025. If ETH closes the month below this level, former support could turn into resistance, increasing the risk of a decline toward $1,000.
Rekt Capital also warned that demand in the current support zone appears to be weakening.
source: X
Ethereum Briefly Falls Behind Tether
Ethereum’s recent decline also produced a notable milestone. Market commentator The Bitcoin Therapist mocked longtime Ethereum supporter Tom Lee after ETH’s market capitalization briefly fell below Tether’s.
As ETH fell to around $1,544 during the crypto market sell-off, Ethereum’s market value declined to about $180 billion. Tether’s market capitalization stood near $187 billion, allowing USDT to temporarily move ahead.
While largely symbolic, the event highlighted the scale of Ethereum’s decline. ETH is down about 23% over the past week, 33% over the past month, and nearly 47% since the start of the year.
Pressure Grows on BitMine’s ETH Holdings
The market downturn has also affected major institutional Ethereum holders. BitMine Immersion Technologies, where Tom Lee serves as chairman, owns around 5.42 million ETH, equal to roughly 4.5% of Ethereum’s circulating supply.
At current prices, the company’s Ethereum holdings are sitting on about $10 billion to $10.4 billion in unrealized losses.
With Ethereum trading near critical long-term support levels, the destination of the transferred 80,001 ETH could provide an important signal for the market.
Related: Ethereum Price Prediction: ETH Faces Downside Risk as ETF Outflows Offset Stable Open Interest
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