Ethereum Under Pressure: Sell-Offs and Volatility Rock ETH Prices

Metalpha’s Significant ETH Sell-Off

Metalpha, a Hong Kong-based asset management firm, recently sold 37.5% of its Ethereum (ETH) holdings. This move could potentially deplete its entire stash by the end of the week, adding considerable pressure to the Ethereum market.

Currently, Metalpha holds only 51,300 ETH, valued at approximately $120 million. If the firm continues selling at the current rate, it might be fully liquidated by the week’s end.

Surge in Deposits and Market Reactions

Metalpha deposited 10,000 ETH, worth $23.5 million, to Binance. Over the past few days, the firm has moved a total of 33,589 ETH, equivalent to about $77.55 million, to the exchange. This surge in deposits is part of a larger trend observed in recent times.

Such large transactions have caught the attention of analysts and the broader cryptocurrency community. These massive movements could cause temporary swings in the price of ETH.

Impact of Ethereum Foundation and Vitalik Buterin’s Sales

Market volatility has been exacerbated by the Ethereum Foundation’s ongoing sell-offs and Vitalik Buterin’s recent ETH sales. Since the launch of the spot Ethereum ETF, the Foundation has been consistently selling ETH, potentially contributing to a supply glut in the market.

Vitalik Buterin’s multi-signature wallet recently sold 760 ETH, raising $1.835 million at an average price of $2,414 per ETH. Despite speculation, Buterin claims that these sales are intended to support valuable projects rather than personal enrichment.

Optimistic Outlook and Technical Analysis

Since 2021, the Ethereum Foundation has auctioned ETH worth $700 million to fund blockchain development and IT projects. Additionally, Jump Trading, a speed trading hedge fund, 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 recent ETH sell-offs might be nearing their end. He notes that Jump Trading’s sales likely contributed to Ethereum’s 25% price drop since the ETH ETF launch.

The Ethereum price chart currently shows a declining trend amidst recent volatility. Priced at $2,327.3, Ethereum faces a resistance level of $2,514.3. An ascending triangle pattern is forming on the chart, indicating a potential bullish breakout. Traders should monitor for a breakout above resistance or a drop below support for potential trading signals.