Jump Trading triggers a massive ETH sell-off, heightening bearish sentiment.
Ethereum’s price struggles, with potential for further declines.
Ethereum has been under significant bearish pressure over the past two weeks, with the cryptocurrency hitting a seven-month low of $2,111 recently. Despite a brief recovery, Ethereum’s price currently stands at $2,640, marking a 4% decline amid decreasing trading volume. The second-largest cryptocurrency continues to face intense selling pressure.
The bearish sentiment is largely driven by actions from Jump Trading, a prominent market maker and trading firm. According to blockchain analyst Lookonchain, Jump Trading moved 17,049 ETH, valued at approximately $46.44 million, in anticipation of a sell-off. This Ether was withdrawn from the liquid staking protocol Lido and subsequently transferred out for sale. The firm still holds 21,394 ETH, worth about $68.58 million, as the sell-off reportedly gains momentum.
On August 14, Jump Trading’s wallet began the Lido withdrawal process at 7:47 am UTC, following a period of dormancy since August 9. Etherscan data reveals a consistent pattern of ETH being moved out in batches, indicating a methodical approach to selling.
In the past 24 hours, other significant Ethereum transactions have been recorded. Whales have been active, with 12,248 ETH, worth approximately $32.13 million, transferred from an unknown wallet to Coinbase. Additionally, 41,600 ETH, valued at $109.19 million, was moved from Binance to Binance Beacon Deposit, while another 12,522 ETH, worth $33.28 million, was transferred from an unknown wallet to Coinbase.
Can Ethereum Bounce Back?
Chart analysis indicates that Ethereum remains under bearish pressure, with the 9-day EMA at $2,666. The daily RSI further confirms the bearish sentiment, currently sitting at 39.
If bullish momentum returns, Ethereum could rise to $2,888 or even $3,050. However, if the bearish trend persists, the price could retrace to $2,401 and possibly as low as $2,308.
