Ethereum is trading near $1,560 following a sharp market selloff. Amid this pullback, an unusually large Ethereum transaction from a wallet believed to be associated with co-founder Joseph Lubin has caught the attention of investors, especially as it coincided with a breach below previously watched support levels.
80,000 ETH moved after over three years of inactivity
On-chain data shows that a wallet tied to Joseph Lubin made its first major move in more than three years, transferring roughly 80,000 ETH. At the time of the transaction, the value of these assets ranged between $121.6 million and $123.5 million. The same wallet had previously held about 243,300 ETH, equivalent to approximately $370 million.
While there is no confirmation that the transferred ETH has been sent to exchanges, data suggests that the assets might have been used as collateral within the MakerDAO ecosystem.
Reports indicate that the ETH was moved to two separate addresses before ultimately being deposited into MakerDAO. As of the current position, the collateralized ETH has been used to borrow nearly $209.26 million worth of DAI. This pattern points more toward risk management and collateral adjustment than a direct sale of ETH.
Glossary: MakerDAO is a DeFi protocol that allows users to generate the decentralized stablecoin DAI by posting crypto assets as collateral. DAI aims to closely track the US dollar, and if collateralization falls below a certain threshold, automatic liquidations can be triggered.
Why is the market closely monitoring this transfer?
The timing and size of the transfer drew additional scrutiny, as it came amid increased selling pressure across crypto markets. Large wallet movements often fuel speculation about possible selling, particularly during high volatility. However, there is still no verification that the ETH was moved to centralized exchanges.
Large investors may shift ETH for several reasons, including changing custody arrangements, security upgrades, preparation for staking, adjusting collateral structures, or managing loan positions. In this case, the use of ETH as collateral for debt strongly suggests that the transaction was designed for DeFi collateral management rather than outright liquidation.
ETF outflows and key technical levels in focus
Ethereum’s weakness has coincided with declining institutional appetite. US spot Ethereum ETFs recorded net outflows of $5.97 million on June 5. Meanwhile, spot Bitcoin ETFs saw an even larger $326 million outflow during the same session. Outflows from regulated investment products often exert downward pressure on market sentiment.
From a technical standpoint, Ethereum has slipped below the previous support levels at $1,873 and $1,693. The current price action places ETH in the key demand area between $1,540 and $1,590. Should buyers manage to defend this range, a short-term rebound toward $1,693 could follow. A more substantial recovery would likely face resistance between $1,750 and $1,790.
What are the downside risks for ETH?
Overall, ETH continues to look weak while trading below $1,873. A short-term turnaround will require reclaiming first the $1,790 level, then $1,873. Otherwise, the recent selloff may continue to weigh on the market.
If the $1,540 to $1,590 support zone fails, the next support area lies between $1,407 and $1,439. A daily close below $1,540 would increase the risk of further downside. Analyst Ali Charts has also noted that a weekly close below $1,850 could accelerate the decline. According to his assessment, $1,560 is an interim target, while $1,070 marks the multi-year bottom zone.
