Ethereum co-founder Joseph Lubin moved 80,001 ETH worth roughly $122 million from a wallet that sat untouched for more than three years, reviving fears of founder selling as the token slid toward $1,500.
The transfer drew attention because dormant founder wallets rarely move during market stress. On-chain trackers later showed the ether never reached an exchange, complicating the sell pressure narrative that formed within minutes.
Why The Lubin Transfer Rattled Traders
Ethereum was trading for $1,575 as of this writing, down about 5.9% over 24 hours, according to BeInCrypto data.
The token has shed approximately 22% across the past week, leaving holders sensitive to any large movement.
Nansen analyst Alex Svanevik first flagged a 40,000 ETH outflow, then revised the figure to 80,000 ETH across two transactions.
On-chain analysts soon traced the address tied to Lubin, which still holds about 243,300 ETH worth near $370 million.
The timing fed existing anxiety. Ethereum spot ETF demand had already collapsed, and Ethereum buying has cooled sharply during the slide.
On-Chain Data Points To MakerDAO, Not An Exchange
The bear case rested on where the coins might land next. Moving tokens to an exchange often indicates intention to sell.
“If any portion of this reaches spot order books during an already-stressed ETH market, it adds meaningful sell pressure,” said one user.
However, on-chain trackers reached a different read. The ether moved to two wallets and was supplied into MakerDAO, with about $209 million in Dai (DAI) borrowed against it.
That pattern points to collateral management aimed at reducing liquidation risk, not distribution.
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Lubin has long held a bullish stance on ETH, which makes outright selling near multi-month lows harder to read as exit behavior.
Whether the remaining 243,300 ETH stays parked will likely shape near-term sentiment.
Traders are now watching for exchange deposits that would confirm distribution rather than DeFi collateralization.
Ethereum ETF Flows Add To The Pressure
Spot Ethereum ETFs briefly interrupted a 17-day outflow run on June 4, taking in $19.3 million, according to SoSoValue data.
However, outflows resumed the next day, with about $6 million leaving on June 5.
The reversal showed how fragile demand remains after two weeks of outflows and a broader crypto risk-off tone.