Ethereum Under Pressure: BlockTowerCapital Dumps $25 Million ETH, Whale Selling Continues, Market Concerns GrowInstitutional Sell-Off Fuels Market ConcernsThe cryptocurrency market has recently experienced a cold spell, with Ethereum (ETH) prices remaining persistently low. Several factors have combined to heighten market concerns
Ethereum Under Pressure: BlockTowerCapital Dumps $25 Million ETH, Whale Selling Continues, Market Concerns Grow
Institutional Sell-Off Fuels Market Concerns
The cryptocurrency market has recently experienced a cold spell, with Ethereum (ETH) prices remaining persistently low. Several factors have combined to heighten market concerns. Notably, the sale of $25 million worth of ETH by prominent cryptocurrency venture capital firm BlockTowerCapital has captured market attention.
On August 13, BlockTowerCapital sold 9,232 ETH, valued at approximately $24.8 million, through various reputable trading platforms, including FalconX, Cumberland, Wintermute Trading, and B2C2 Group. This move occurred when ETH prices were attempting to rebound and potentially rise back to $3,000, unsettling market investors.
BlockTowerCapital's divestment may reflect a cautious stance among institutional investors regarding the current cryptocurrency market. Institutional investment interest has generally declined recently, with Bitcoin prices dropping 4.5% on August 12, seemingly part of a broader trend.
Data from blockchain analytics platform Lookonchain reveals that institutional investors have ceased receiving significant amounts of Tether (USDT) from TetherTreasury and transferring them to major exchanges like Kraken and Binance. This halt in institutional USDT inflows began three days prior.
Whale Continues Selling Spree, Intensifying Market Concerns
Adding to the market's anxieties, a prominent Ethereum whale has been engaged in large-scale ETH sell-offs in recent weeks.
This whale initially acquired 1 million ETH at $0.31 per coin during the Ethereum ICO, but has been aggressively selling ETH in recent weeks. On August 12, the whale dumped another 5,000 ETH, valued at about $13.2 million, on the OKX cryptocurrency exchange. This brings the whale's total sales in the past month to a staggering 48,500 ETH, worth approximately $154 million.
PlusToken Event Aftermath
Furthermore, a recent investigation by EmberCN uncovered significant Ethereum transfers linked to the now-defunct Bidesk exchange. Between June and September 2021, a total of 789,534 ETH were moved through various wallets to Bidesk. Later that year, after Bidesk went bankrupt, these assets were transferred to Huobi exchange.
It's noteworthy that 268,843 ETH were channeled into Bidesk through four specific deposit addresses. However, some of these assets never reached Bidesk, while others were withdrawn but not yet transferred to Huobi. The investigation also revealed that 12 addresses associated with the PlusToken Ponzi scheme received a large portion of these Ethereum assets.
Last week, $63.1 million worth of Ethereum was transferred, while the whale sold off another 5,000 ETH. EmberCN speculates that the Chinese government may have sold a significant portion of the 789,534 ETH in 2021. This suggests that the recent transfer may not have a substantial impact on the market.
Nevertheless, the transfer, the whale's continued selling, and the waning interest in ETHETFs have fueled investor caution.
Technical Indicators Suggest Bearish Outlook
From a technical analysis perspective, ETH prices are currently hovering around $2,656, having encountered resistance at the $2,700 level. This aligns with the 78.6% Fibonacci retracement level.
This resistance, coupled with the impending death cross, foreshadowed by the 50-day exponential moving average (EMA) breaking below the 200-day EMA, hints at a potential bearish outlook. A death cross is often considered a strong sell signal, prompting traders to potentially exit positions or tighten stop-loss orders.
Another indicator, the Moving Average Convergence Divergence (MACD), is currently in negative territory, signaling a sell-off. This negative MACD reading further encourages traders to consider shorting Ethereum.
Specifically, a break below the short-term support level of $2,500 would be bearish. A break below this support could exacerbate the impact of the death cross, potentially triggering a sell-off towards the $2,000 level. Last week, Ethereum tested the $2,100 support, implying that further downside below $2,000 cannot be ruled out.
Hope For A Rebound Still Exists
However, the In/Out of the Money Around Price (IOMAP) model indicates that while there is a lack of strong support above $2,500 for ETH prices, there's a clear rebound path towards $3,000.
Should Ethereum manage to break through the current $2,700 hurdle, it could trigger a rapid price surge. This could usher in a new bullish phase, potentially driving prices up to $4,000.
Meanwhile, cryptocurrency analyst CrediBULLCrypto on X predicts that Ethereum will first experience a downtrend before breaking above $3,000, ultimately reaching $3,600.
In Conclusion
The sell-offs by BlockTowerCapital, the continuous whale selling, and the aftermath of the PlusToken event have amplified market concerns surrounding Ethereum. Technical indicators signal a bearish outlook, but hope for a rebound remains.
The future direction of Ethereum prices will depend on market sentiment, the stance of institutional investors, and the actions of whales. Investors should closely monitor market dynamics and make investment decisions based on their individual risk tolerance.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
