Over $3.5 billion worth of Ethereum is about to be withdrawn: How will the price of Cryptocurrency ETH react?

As expected, in the next nine hours, over $350 million worth of Ether will be unlocked, posing a threat to the key support level of the cryptocurrency ETH price. A total of 145,380 Ether (worth approximately $353 million) will be available for withdrawal at 20:00 UTC. According to data, this poses potential dumping pressure on the world's second largest cryptocurrency.

Although the withdrawal of ETH coins does not necessarily mean an immediate sale, a considerable portion of the Tokens may be liquidated in the market. Despite the significance of unlocking $350 million, analysts point out that such scale of withdrawals has become common after the ETH merge and Shanghai update.

This is against the backdrop of assets with a market capitalization of 3 trillion USD and a daily volume of 24 billion USD on CEX. The price of Ether has fallen for three consecutive weeks, falling below 2,200 USD this week, hitting a new low for five months. Previously, the cryptocurrency market experienced a dumping of 510 billion USD. Losing this psychological support level may lead to further panic dumping.

ETH validators plan to cash out their Token and stake rewards, which could increase dumping pressure. Currently, there are another 360,000 ETH coins waiting to be withdrawn from over 10,000 validators, which could bring an additional dumping pressure of $877 million. The recent big dump of ETH coins can be attributed to macroeconomic factors and specific industry dynamics, including the active dumping by Jump Trading.

According to a report from a large digital asset trading group in Singapore, Jump Trading and Paradigm VC have dumped ETH on a large scale, triggering a chain reaction from market makers attempting margin replenishment. A total of five major market makers have sold 130,000 Ether, worth over $290 million, causing the price of ETH to fall from $3,000 to less than $2,200.