Ethereum is trading near $1,560 after a sharp market decline pushed ETH below key support levels and raised attention around a large wallet linked to Ethereum co-founder Joseph Lubin.
Blockchain data showed that a Lubin-linked wallet transferred about 80,000 ETH, valued at $121.6 million to $123.5 million, after more than three years of inactivity. The wallet had previously held about 243,300 ETH, valued at around $370 million.
The transferred ETH was reportedly moved to two wallets and supplied to MakerDAO. The position currently has about $209.26 million in DAI borrowed against the ETH, suggesting the move may be linked to collateral management and liquidation-risk reduction rather than a confirmed sale.
Joseph Lubin-Linked Wallet Moves 80,000 ETH
The transaction drew attention because of its size and timing. Ethereum has been under pressure as crypto volatility rises, and large wallet movements often trigger market speculation during selloffs.
Some market watchers questioned whether the transfer signaled potential selling. However, the ETH was not confirmed to have moved to an exchange. The reported MakerDAO activity suggests the assets were used as collateral within decentralized finance.
Large holders may move ETH for several reasons, including custody changes, security management, staking plans, collateral restructuring, or debt-position adjustment. In this case, the reported borrowing against supplied ETH points to a DeFi collateral strategy.
The wallet still remains important to traders because it was inactive for more than three years before the transaction. Any further movement toward centralized exchanges would likely draw renewed market attention.
ETH ETF Outflows Add Market Pressure
Ethereum’s decline has also come alongside weaker institutional demand. U.S. spot Ethereum ETFs recorded a net outflow of $5.97 million on June 5. Bitcoin ETFs also saw larger outflows of $326 million during the same session.
Source: X
ETF outflows can affect sentiment because they show reduced demand from regulated investment products. The latest data arrived as ETH fell through support levels and broader crypto markets remained under pressure.
Ethereum has now broken below $1,873 and $1,693, two levels that had previously acted as support. The move lower brought ETH into a major demand area between $1,540 and $1,590.
If buyers defend that zone, ETH could attempt a relief rebound toward $1,693. A stronger bounce could target the $1,750 to $1,790 resistance area. However, that zone may now act as resistance because it previously served as support.
Ethereum Price Technical Levels Point to Key Test
The broader Ethereum chart remains bearish while ETH trades below $1,873. A move back above $1,790 would improve short-term momentum, but buyers would still need to reclaim $1,873 before the trend shows clearer recovery signs.
If ETH fails to hold the $1,540 to $1,590 demand zone, the next support area sits between $1,407 and $1,439. A daily close below $1,540 would increase the risk of a deeper move into that lower range.
Source: X
Analyst Ali Charts has also agreed, saying that a weekly close below $1,850 could increase the chance of downside acceleration. Based on the broader channel structure, he identified $1,560 as an interim downside target and $1,070 as the lower boundary of the multi-year range.
Ethereum is now at a decision point. Holding the current demand zone could allow a short-term rebound, while losing $1,540 would keep sellers in control and shift attention toward $1,439 and $1,407.
