Coinspeaker VC Firm BlockTower Offloads $25M in ETH amid Whale Sell-off
Renowned crypto venture capital firm BlockTower Capital has recently offloaded $25 million worth of Ethereum (ETH). The sale, executed on August 13, comes amidst a broader market rebound for ETH, which is currently testing the $3,000 resistance level.
This large-scale liquidation by a company known for its strategic investments in the digital assets space has raised concerns about the sustainability of Ethereum’s recent price gains.
BlockTower Capital’s sale involved the disposal of 9,232 ETH, valued at around $24.8 million. The sales were executed across several trading platforms, with 3,537.81 ETH sold via FalconX, 2,954.28 ETH through B2C2 Group, 2,090.24 ETH via Wintermute Trading, and 639.28 ETH on Cumberland.
Notably, BlockTower Capital’s liquidation comes when institutions’ crypto investments appear to be waning, with a marked downturn in the broader market in recent times.
Whale Activity
Compounding the pressure on Ethereum price is the activity of one of the oldest Ethereum whales. This whale has been on a selling spree in recent weeks, selling 5,000 ETH on August 12, valued at $13.2 million. Over the past month, the whale has offloaded 48,500 ETH, worth around $154 million, contributing to the downward pressure on Ethereum’s price.
Despite these bearish developments, there are signs of renewed buying interest from certain quarters. Notably, a whale who was previously liquidated during the market crash on August 5, losing 2,890 wstETH (worth $8.06 million), has re-entered the market with a bullish stance.
Since August 11, this investor has borrowed $6.6 million in DAI, $2.7 million in USDT, and $2.5 million in USDC to purchase 4,459 ETH, valued at $11.8 million, at an average price of $2,646.
Ether Price Movement
Currently, Ethereum is trading around $2,642, having faced rejection at the $2,700 resistance level. The cryptocurrency has managed a modest 2% gain in the past 24 hours and a 7.5% increase over the past week.
This upward momentum is partly fueled by increased inflows into Ethereum exchange-traded funds (ETFs). Data from SoSo Value indicates a daily net inflow of $4.93 million into US-listed spot Ether ETFs on Monday. Fidelity’s FETH led the way with $3.98 million in inflows, followed by Franklin Templeton’s EZET, which brought in $1 million, and Bitwise’s ETHW, contributing $2.86 million in positive flow. Notably, Monday’s inflows have broken the 3-day streak of outflow from these funds.
Looking ahead, if Ethereum can successfully break through the $2,700 resistance, it could pave the way for an upward movement. Such a breakout could potentially send the price towards the $4,000 mark. This would be a significant recovery, though still short of Ethereum’s all-time high of $4,891, achieved in 2021.
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VC Firm BlockTower Offloads $25M in ETH amid Whale Sell-off
