Jump Trading Dumps Ethereum Again, ETH Price Drop to $2K Possible?

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As a seasoned researcher with over two decades of experience in the crypto market, I have seen enough ebbs and flows to know that every trend has its own unique rhythm. The recent movements of Ethereum, especially the activity surrounding Jump Trading and the dormant wallets linked to China, have certainly caught my attention.

Following a robust 20% surge on August 6, Ethereum‘s price has found it tough to stay above the $2,500 mark. Recent on-chain reports indicate that Jump Trading is unloading Ethereum yet again, this time from its remaining Ethereum reserves.

According to the most recent figures provided by Spot on Chain, Jump Trading has successfully withdrawn approximately 11,500 Ether valued at around $29 million from Lido Finance. This latest transaction also saw the firm exchanging 16,210 WSTETH for a total of 19,049 STETH.

The data shows that Jump Trading further transferred the 11,500 ETH to the wallet address “0xf58”, which the company uses frequently for depositing to centralized exchanges (CEXs). As of now, the firm still holds a total of 21,394 $WSTETH, valued at $63.6 million, and 16,292 ETH, worth $41.3 million. Besides, it is also in the process of unstaking 19,049 $STETH from Lido Finance.

As an analyst, I can report that I recently observed a successful unstaking of approximately 11,500 Ether ($29 million) from Lido Finance by Jump Trading. Additionally, within the past hour, they successfully redeemed 16,210 Wrapped Ether (WSTETH) and received an equivalent of 19,049 Ether (STETH).
Keep in mind that an amount of 11,500 ETH was moved to the wallet address “0xf58”, a wallet they frequently utilize for depositing ETH into cryptocurrency exchanges (CEX).
Currently, Jump…
— Spot On Chain (@spotonchain) August 7, 2024

Wallets Linked to China Moving $2 Billion of Ethereum

Notably, over three years since they last transacted, numerous Ethereum digital wallets have become active again, transferring a substantial amount of Ethereum tokens. It is estimated that these wallets collectively transferred 789,533 ETH, equivalent to approximately $2 billion in current value.

It appears that an examination of transactions on the blockchain suggests these seemingly inactive accounts are associated with a wallet known as “Plus Token Ponzi 2.” In the year 2020, this wallet transferred approximately 789,533 ETH to numerous other wallets, yet it has been completely quiet since April 2021.

Approximately three hours ago, these digital wallets became active, suggesting a significant transaction linked to the Plus Token Ponzi scheme. It’s worth noting that the Ethereum held within these wallets were confiscated by Chinese authorities during their investigation in 2020.

In the past hour, Jump Trading successfully withdrew approximately 11,500 Ether (worth around 29 million dollars) from Lido Finance and further converted 16,210 Wrapped Ether into about 19,049 Standard Ether.
Keep in mind that an amount of 11,500 ETH was moved to the wallet address “0xf58”. This is a wallet they frequently utilize for depositing ETH into centralized exchanges (CEX).
Currently, Jump…
— Spot On Chain (@spotonchain) August 7, 2024

At the moment of publication, Ethereum is being exchanged at approximately $2,456, with a total market value of around $295 billion. According to financial experts, there’s a possibility of another drop in Ethereum’s price below $2,000, as the cryptocurrency may revisit its earlier low from this week. This potential dip might occur quite soon.

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2024-08-07 17:55