Newly: Jump Trading Increases Ethereum Sales, Possible ETH Price Decline?
Jump Trading, a prominent crypto market maker, has initiated the sale of a substantial amount of Ethereum holdings, according to data from on-chain platforms. This strategic move could potentially lead to a correction in the price of Ethereum, reminiscent of the significant 20% crash observed just last week.
On August 14, Lookonchain reported that Jump Trading, a leading crypto trading firm, has commenced the sale of Ethereum once again. The firm managed to offload 17,049 ETH valued at $46.44 million from the liquid staking protocol Lido. Subsequently, these coins were transferred to the wallet address “0xf58,” a wallet primarily utilized by the firm for selling to various crypto exchanges. Currently, Jump Trading holds 21,394 wstETH, equivalent to $68.58 million.
Spot On Chain disclosed that the crypto firm recently exchanged the remaining 21,394 wstETH for 25,156 stETH. However, unlike previous instances, the firm did not opt for an immediate withdrawal from Lido, as noted by Spot On Chain.
Jump Trading retains a significant Ethereum portfolio, amounting to nearly $148 million. This includes 24,993 ETH stored in wallet 0xf58 and 29,093 stETH staked with Lido Finance. The pace of selloffs accelerated following Kanav Kariya’s announcement of departure from Jump Crypto, where he served as the firm’s president for almost three years. This development coincided with the initiation of a CFTC investigation into Jump Crypto in June.
The recent liquidation activities by Jump Trading have raised concerns about the potential for another downturn in the price of Ethereum. Last week, Ethereum experienced a sharp decline of over 20% following Jump Trading’s liquidation of $300 million to various crypto exchanges. While the initial dump involved 17,576 ETH valued at $46 million on centralized exchanges, the current movement of a larger ETH volume indicates a more substantial impact.
At present, the price of Ethereum has seen a modest increase of over 3% in the last 24 hours, with the current trading price standing at $2,725. The 24-hour trading range for Ethereum fluctuated between $2,613 and $2,750. Additionally, there has been a notable 28% decrease in trading volume over the past 24 hours, signaling a waning interest among traders.
In the derivatives market, Ethereum has witnessed sudden selling activity, with total ETH futures open interest declining by more than 1% on select exchanges within the last 4 hours, as per Coinglass data. The aggregate futures open interest currently stands at $29.92 billion, reflecting a 5% increase over the past day.
Furthermore, there are indications of a potential liquidation of Threshold (T) by Jump Trading following the recent massive Ethereum sell-off of $300 million, as reported by CoinGape.
