Metalpha's recent sale of 37.5% of its ETH holdings could completely deplete its stash by week's end, intensifying market pressure.
The Ethereum Foundation's consistent sell-offs and Vitalik Buterin's ETH sales contribute to market volatility and a possible supply glut.
Despite ETH sell-offs, an ascending triangle pattern on Ethereum's chart hints at a potential bullish breakout opportunity ahead.
Metalpha, an asset management based in Hong Kong, has sold off a sizable amount of its Ethereum (ETH). Because large market participants are to sell down their holdings, Ethereum is under pressure.
The firm sold 37.5% of its ETH holdings in just four days. Consequently, Metalpha now holds only 51,300 ETH, valued at approximately $120 million. If the current pace of selling persists, it might be completely liquidated by week’s end.
Surge in Deposits and Market Reactions
Metalpha deposited 10,000 ETH, worth $23.5 million, to Binance. Metalpha has moved 33,589 ETH, or roughly $77.55 million, to the exchange in the last few days, so this addition fits into a bigger trend.
https://twitter.com/lookonchain/status/1833020339863118081
Analysts and the larger cryptocurrency community have taken notice of this increase in deposits. The price of ETH could be affected by such massive transactions and experience momentary swings.
There has been an increase in market volatility following the sale of the Ethereum Foundation and Vitalik Buterin's interests. The Ethereum Foundation has been selling its ETH consistently since the spot Ethereum ETF launched, according to recent data. This has potentially created a supply glut in the market.
Similarly, Vitalik Buterin’s multi-signature wallet sold 760 ETH, generating $1.835 million at an average price of $2,414 per ETH. Despite rumors, Buterin insists that his sales have supported valuable projects rather than personal gains.
https://twitter.com/spotonchain/status/1832981226753532049 Optimistic Outlook and Technical Analysis
ETH worth $700 million has been auctioned by the Ethereum Foundation since 2021. The firm uses these funds for blockchain development and IT projects. Additionally, Jump Trading, a speed trading hedge fund, also sold 17,049 ETH for $46.44 million in August 2024.
On a more optimistic note, crypto analyst Michaël van de Poppe suggests that the ETH selling spree may be nearing its end. He highlights that Jump Trading’s sell-offs likely contributed to Ethereum’s 25% price drop since the ETH ETF launch.
The Ethereum price chart shows a declining trend with recent volatility. Currently priced at $2,327.3, Ethereum faces a resistance level of $2,514.3. An ascending triangle pattern is forming, suggesting a potential upward breakout. Traders should watch for a breakout above resistance or a drop below support for trade signals.
The post Ethereum Faces Pressure: Major Sell-Offs and Market Volatility Shake Up ETH Prices appeared first on Crypto News Land.
