Ethereum Price Faces Challenges as Major Investors Keep Selling Off
Ethereum (ETH) is facing significant selling pressure following a recent market crash, with large holders continuing to unload their holdings despite attempts by bulls to stage a recovery.
A Twitter user known as Lookonchain reported that Metalpha, a whale and asset manager, sold nearly $73 million worth of ETH in the final hours of trading on August 5. Data from on-chain sources indicates that these entities transferred 29,557 ETH to a Binance deposit address within the past three hours.
The market saw over $1 billion in liquidations over the last 24 hours, with ETH-related liquidations accounting for 30% of that total, according to data from Coinglass.
In addition, Jump Crypto has been moving millions of dollars in Ethereum to various exchanges in recent days. The company transferred 72,213 ETH, valued at $231 million, since July 25, with a significant portion moved over the weekend.
Gracy Chen, the CEO of Bitget, mentioned that the selling pressure from entities like Jump Trading, combined with bearish predictions following ETF approvals, contributed to the recent downturn in the market.
Interestingly, the US government moved 300 ETH from a wallet labeled as “Noman Saleem Seized Funds” to an undisclosed address on August 5, as reported by Arkham Intelligence data. These funds were seized in May by order of Judge Julie Rebecca Rubin of the US District Court for the District of Maryland.
On the ETF front, outflows from Grayscale’s spot Ethereum exchange-traded fund (ETF) ETHE remain substantial. On August 5, over $335 million left the fund, surpassing the $221 million in inflows recorded by BlackRock’s ETHA.
The outflows from ETHE are viewed as a pressure point for Ethereum’s price in the short term, similar to the impact of outflows from Grayscale’s GBTC in the weeks following its launch.
In conclusion, Ethereum is navigating a challenging market environment marked by significant selling pressure from major holders, liquidations, and notable fund movements. These factors, along with regulatory developments and market dynamics, are influencing the cryptocurrency’s price performance in the short term.
