Ethereum Faces Selling Pressure Despite Recent Recovery
On August 6, Ethereum experienced a welcomed recovery, but the coin is under immense selling pressure today, August 7. Despite early gains, losses have pushed Ethereum lower, as shown in the daily chart.
Resistance at $3,500 and Potential Further Decline
The daily chart indicates that Ethereum faced rejection at the $3,500 resistance level. If bearish momentum continues, Ethereum could mirror the losses seen earlier in the week and potentially plummet further.
Jump Trading Liquidating Ethereum: Will Prices Drop Below $2,000?
Several factors are contributing to Ethereum’s recent weakness, with the $2,000 support line now in focus. Among these factors, Jump Trading, a prominent crypto market-making firm, has been aggressively selling ETH over the past few days, adding to the downward pressure on prices.
According to data from Lookonchain, Jump Trading recently claimed 11,501 ETH, worth over $29 million, from the liquidity staking platform Lido Finance. This large block of ETH is reportedly set for sale. Furthermore, Jump Trading, currently under investigation by the United States Commodity Futures Trading Commission (CFTC), plans to redeem another 19,049 ETH, valued at over $48 million, from the same platform. The anticipated sale of this additional ETH could further weigh down prices.
PlusToken Ponzi Scheme Tokens Moving, Impact of the Ronin Bridge Hack
In addition to the liquidity impact of Jump Trading, large amounts of ETH are being moved from wallets associated with the infamous PlusToken Ponzi scheme. According to Scopescan data, these wallets, which control roughly $2 billion worth of ETH, are on the move for the first time since 2021, when Chinese authorities shut down the scam.
This movement has sparked concerns, similar to when the United States government moved $2 billion worth of BTC or when Mt. Gox began distributing BTC. The current sentiment surrounding ETH has been negatively impacted, potentially depressing prices in the short to medium term.
Moreover, ETH is facing additional pressure due to the recent security breach of the Ronin Bridge. While a white-hat hacker has returned approximately 2 million USDC of the reported $10 million lost, the fact that ETH was the main asset stolen raises concerns. Notably, this is not the first time the Ronin Bridge has been compromised; in 2022, it lost over $600 million in a disastrous hack.
Ecosystem
Research
News Network
About