Ethereum (ETH) is facing renewed concerns as a major early investor continues to offload millions of dollars worth of Ether. The ongoing sell-off comes at a time when Ether’s price has dropped by nearly 10% since the start of October.

Whale Sells 19,000 ETH Amid Price Drop

On October 3, onchain analytics platform Lookonchain reported that a participant in Ethereum’s Initial Coin Offering (ICO) from 2014 had sold another 19,000 ETH, worth approximately $47.5 million. This sale is part of a two-week-long selling spree by the investor, which began in late September with a transfer of 12,000 ETH to the Kraken exchange.

The entity in question was part of Ethereum’s ICO in 2014, where they acquired 150,000 ETH for around $46,500. Today, the value of this stash has risen to nearly $400 million. The recent selling has triggered concerns among investors, particularly since this account had been dormant for years before suddenly liquidating large amounts of ETH.

Impact on Ethereum’s Price

Ether’s price has struggled in recent days, declining from $2,650 on October 1 to a low of $2,365 on October 3. The 10% drop in just a few days has outpaced the overall crypto market, which saw a decline of 2.6% during the same period. The ETH/BTC ratio has also dipped to its lowest levels since mid-September, adding to fears that Ethereum may be underperforming compared to Bitcoin.

The sell-off has fueled fear, uncertainty, and doubt (FUD) surrounding Ethereum. Critics have pointed out that even long-term holders, or “OGs” from Ethereum’s early days, seem to be abandoning the asset. Notably, crypto trader Bluntz commented on social media, expressing concern that even early adopters are “jumping ship.”

Solana advocates have also used the opportunity to criticize Ethereum, with one prominent Solana supporter suggesting that Ethereum is “dragging crypto lower.”

Ethereum Community Remains Optimistic

Despite the negative sentiment, many Ethereum supporters continue to back the network. Ethereum educator Anthony Sassano dismissed the FUD, noting that it never really goes away and that many critics are not focusing on the actual value Ethereum is bringing to the industry. He was echoed by Ryan Sean Adams from Bankless, who highlighted Ethereum’s strong performance in producing multiple chains with a combined profit of over $140 million in the past year.

On a more positive note, institutional investors seem to be showing renewed interest in Ethereum. On October 2, spot Ether ETFs saw an inflow of nearly $20 million, largely driven by BlackRock. This was the largest inflow in a week and came after a significant outflow the day before. In contrast, Bitcoin ETFs saw outflows of $53 million over two days.

Future Outlook for Ethereum

While the short-term outlook may seem bleak due to the recent whale sell-off and price dip, Ethereum is far from stagnant. Former Sushi CTO Joseph Delong emphasized that the network is gearing up for major upgrades, with a focus on onboarding the next billion users. These improvements include account abstraction and enhanced security features, which are expected to make Ethereum more user-friendly and accessible in the long term.

In conclusion, while the market may be reacting to the large-scale selling of ETH by an early investor, Ethereum’s fundamentals remain strong, and its supporters are optimistic about the future. Whether the price slump continues or reverses will depend on various factors, including market sentiment, future network upgrades, and broader crypto trends.