Bitcoin News, Crypto News
Market Makers Offload Over $300M in Ether as ETH Price Plummets Below $2,200
Aug
Market Makers Liquidate Over $300 Million in Ether as ETH Price Dips Below $2,200
The price of Ether experienced a significant drop, falling from above $3,000 to around $2,100, largely due to selling activities from a select group of market participants.
The selling patterns of market makers have played a critical role in the recent downturn of the cryptocurrency market.
Since August 3rd, five prominent market makers have collectively offloaded approximately 130,000 Ether (ETH), equivalent to $290 million at today’s market price. This selling spree coincides with Ether’s drop from $3,000 to below $2,200.
Among these market makers include:
- Wintermute with over 47,000 Ether sold
- Jump Trading, which offloaded more than 36,000 Ether
- Flow Traders, with sales amounting to 3,620 Ether
- GSR Markets, contributing another 292 Ether
- Amber Group, selling 65 Ether
According to research shared by 0xScope, Jump Trading led the way in selling activity, although Wintermute’s total sales exceeded that of Jump Trading. An observation noted on August 5 highlighted Jump Trading initiating sales during a period of low liquidity.
“Jump Trading started dumping $ETH this past weekend, ahead of other major market makers, despite low liquidity.”
Currently, Ether is struggling to hold above the critical $2,200 threshold. Further selling from market makers and large holders could potentially drive prices lower, leading to increased panic among investors.
Ether Price Challenges at $2,200
The price of Ether saw a sharp decline of over 22.3% within 24 hours leading up to a recent trading session, reaching approximately $2,233 during that time frame.
At one point, the price touched a daily low of $2,195 early in the morning before recovering slightly above the $2,200 level.
Despite the current bearish trend, there are some optimistic forecasts. A pseudonymous crypto trader, MarketWizard, suggested that Ether’s current price point could represent a significant opportunity, paralleling previous patterns that suggest potential price doubling.
“Despite how scary things are right now, ETH is at the sweet spot. Retesting the 2-year base that caused an x2 earlier this year.”
Impact of US Spot Ether ETFs
The notable decline in Ether’s price has occurred in the wake of the launch of the first spot Ether exchange-traded funds (ETFs) in the United States, which began trading on July 23.
However, despite this momentous launch, Ether ETF inflows have remained disappointingly low, with over $511 million in cumulative net outflows reported since the inception of these products, according to data from Farside Investors.
Grayscale’s Ether ETF (ETHE) has been a significant contributor to these outflows, with amounts exceeding $2.1 billion, while other ETF providers have recorded net positive inflows.
Although the advent of Ether ETFs signifies a crucial step towards regulatory acceptance, some analysts believe that ETH ETFs may be overshadowed by Bitcoin ETFs in terms of inflows. Eric Balchunas, a senior ETF analyst at Bloomberg, remarked:
“Bitcoin is like enough crypto hot sauce. You’re like, ‘You know, I’m good.’ These things move together anyway. Ethereum is harder to explain, but I’m just seeing it being a sidekick [to Bitcoin].”
