Ethereum Price Drops 3.5% Daily as Jump Trading Sells More ETH

Jump Trading, a crypto algorithmic trading platform and market maker, has resumed selling ether (ETH) by offloading more than 17,000 ETH, valued at over $46.44 million, on Wednesday. The move was revealed by blockchain analytics firm Lookonchain, which disclosed that Jump Trading had acquired the assets from the liquid staking protocol Lido and subsequently put them up for sale in batches of 2,000 ETH.

According to Lookonchain, Jump Trading still holds 21,394 Wrapped Staked ETH (wstETH) worth around $68.58 million, indicating the potential for further ETH sales in the near future. This recent sale marks a continuation of Jump Trading’s streak of ETH sales that began in July, briefly pausing in early August before resuming this week.

Earlier in August, Lookonchain reported that Jump Trading had sold 120,695 wstETH, equivalent to $481 million, and had already sold 83,000 wstETH valued at $377 million since July 24. During this period, ETH experienced a significant price drop of over 33%, plummeting from $3,400 to $2,200.

The blockchain analyst clarified that the 120,695 wstETH sold by Jump Trading had been recovered from attackers who exploited the Wormhole protocol, leaving the firm with approximately 37,604 wstETH, valued at $104 million, yet to be sold.

Following Jump Trading’s recent coin movements, the initial impact on ETH’s price was minimal. However, the situation shifted as ETH swiftly declined from $2,775 to $2,645 and has since been hovering around that level. With the market currently trading sideways, the ability of ETH to absorb potential sales in the upcoming days remains uncertain, raising concerns about potential market volatility.

The activities of Jump Trading have sparked discussions among market participants, with some speculating about potential market manipulation. While Lookonchain suggested that the fund movements could be related to liquidity provision on exchanges rather than outright sales, the situation has raised eyebrows within the crypto community.

Meanwhile, Jump Trading has been under scrutiny from U.S. authorities since mid-June, with the Commodity Futures Trading Commission (CFTC) investigating the market maker’s involvement in crypto trading and investment activities. Despite the ongoing investigation, no charges or allegations have been announced against the firm, emphasizing that the inquiry is not indicative of any wrongdoing.