Ethereum (ETH) is facing significant selling pressure, causing its price to drop below $3,400. Currently, ETH is trading at $3,436, a 4.23% decline, with a market capitalization of $420 billion. On-chain data reveals that early Ethereum investors, who participated in the Initial Coin Offering (ICO), are liquidating their holdings, which have been idle for nearly a decade.

According to SpotOnChain, an on-chain data provider, an Ethereum ICO participant transferred 5,500 ETH, worth $19.3 million, to the Kraken exchange just hours before the price drop. This is not an isolated incident, as the same investor moved an additional 10,000 ETH, valued at $35.4 million, to Kraken over the past two days. Despite these significant transfers, the investor still holds 139,000 ETH, worth $476 million, across three wallets.

Despite the recent price correction, Ethereum's on-chain indicators suggest strength. In the past ten days, a massive 4.1 million ETH has been withdrawn from exchanges, leaving only 12 million ETH, or 10% of the total supply, on centralized exchanges. This is the lowest level since 2016, indicating a potential bullish trend. The launch of the spot Ethereum ETF, expected by July 2, could lead to significant capital inflows and an upward rally in ETH price.

The recent price drop may be a final pullback before the ETF launch, as Bloomberg analyst Eric Balchunas expects the spot Ethereum ETFs to go live for trading soon. This could lead to a surge in ETH price, as investors take advantage of the new investment opportunity.

In conclusion, Ethereum's price drop may be a temporary correction, as early investors liquidate their holdings. However, on-chain indicators suggest a strong bullish trend, and the upcoming launch of the spot Ethereum ETF could lead to significant capital inflows and a price rally. As the market continues to evolve, it remains to be seen how Ethereum will perform in the coming days.