As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the rollercoaster ride that is Ethereum’s price action. Today, on August 7, the coin seems to be under immense selling pressure, a stark contrast to its recovery just yesterday.
On August 7, Ethereum, which had a positive recovery on August 6, is currently experiencing significant downward pressure. Earlier in the day, it showed some gains, but these were quickly offset by losses, causing the coin to dip slightly when observed on the daily chart.
In simpler terms, the daily price graph didn’t allow the coin to advance beyond the $3,500 barrier (a difficult point for Ethereum). If the bearish trend continues, Ethereum might follow its downward trajectory of the initial days this week.
Jump Trading Liquidating Ethereum: Will Prices Drop Below $2,000?
A combination of various elements is causing the current downtrend. There’s a possibility it could continue to fall, potentially hitting the $2,000 support level. Given the overall crypto community’s apprehension, Jump Trading, a prominent player in the cryptocurrency market, has been consistently selling ETH over the last few trading days.
As a data analyst, I’ve observed that, based on Lookonchain data, Jump Trading has asserted ownership of approximately 11,501 Ether (ETH) with a value exceeding $29 million from Lido Finance’s liquidity staking platform. Notably, the blockchain analytics platform reports that this specific block of ETH is earmarked for sale.
In a current investigation by the U.S. Commodity Futures Trading Commission (CFTC), Jump Trading is also intending to withdraw approximately 19,049 ETH, equivalent to around $48 million, from the same platform. This substantial sum is expected to be sold on secondary markets, potentially exacerbating price declines.
On August 5th, Jump Trading sold off approximately 120,000 wETH, intensifying the downward trend. While Bitcoin fell over 20% that day, the decline was more significant on Ethereum, plummeting almost 40% from its July peaks and reaching a low of $2,100.
PlusToken Ponzi Scheme Tokens Moving, Impact Of The Ronin Bridge Hack
Large quantities of Ethereum linked to the PlusToken Ponzi scheme are reportedly being transferred from connected wallets, as per Scopescan data. These wallets had not been active since Chinese authorities dismantled the fraud in 2021. This movement could potentially affect liquidity beyond what Jump Trading is involved with.
The PlusToken digital wallets hold around $2 billion in Ethereum (ETH). Just as there was panic when the U.S. government transferred $2 billion in Bitcoin (BTC) and when Mt. Gox started distributing BTC, a similar situation is occurring now. Currently, the market sentiment has been negatively affected, which could potentially cause ETH prices to drop in the near future.
Despite being relatively small, Ethereum (ETH) is under increased stress following the security breach of the Ronin Bridge. Although a white-hat hacker recovered approximately 2 million USDC from the reported $10 million stolen, the primary target being ETH raises concerns. It’s important to note that this isn’t the first time the Ronin Bridge has suffered financial losses – in 2022, it was hacked and lost over $600 million.
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2024-08-08 14:10