Another Big Sale At the Expense of Ethereum
Ethereum (ETH) price could face another downturn following reports that Jump Trading, the crypto arm of a Chicago-based trading firm, could sell around $80 million worth of the altcoin.
According to Spot On Chain, Jump Trading unstaked 11,500 ETH worth $29 million from Lido Finance. Moments later, on-chain data showed that it had transferred all the coins to a centralized exchange. The transfer of previously locked assets to exchanges signals that a market participant intends to sell.
The firm has also applied to redeem over 14,000 ETH valued at over $48 million. Once this happens, there is a high chance of another sale, potentially putting downward pressure on ETH's price. In total, Jump Trading could sell around $80 million worth of Ethereum.
However, this isn't the first time the firm has been involved in a significant sale recently. On August 5, Jump Trading sold ETH worth over $231 million.
Regarding this development, another on-chain data portal, EmberCN, shared details about Jump Trading's other activities:
"Jump Trading is responsible for unpacking the ETH redemption address and transferring the 11,500 ETH ($28.9 million) redeemed on 8/4 to the address responsible for distributing and transferring the ETH to CEX. Continue to transfer 16,210 wstETH ($47.92 million) from the address storing wstETH to the address responsible for unpacking and redeeming ETH and continue to apply for redemption. The address storing wstETH still has 21,394 wstETH ($63.33 million) waiting for subsequent redemption and transfer."
At press time, ETH price trades at $2,544, representing a 3.10% increase in the last 24 hours. However, this anticipated sale could halt the cryptocurrency's recovery and add to the 23.49% seven-day decrease.
ETH Price Prediction: Is $2,600 Next?
While the anticipated sell could drive ETH's price down, data from IntoTheBlock shows underlying support that could resist the pressure. This is evident from the In/Out of Money Around Price (IOMAP). The IOMAP classifies addresses based on those in profit, in loss, and at breakeven point. This classification helps spot support, resistance, and price levels where a crypto price may reach.
Typically, if there is a higher number of addresses out of the money, the price range acts as resistance. However, a higher number of addresses in the money provides stronger support. As shown in the chart below, 1.32 million addresses purchased ETH at an average price of $2,384.
Conversely, 1.18 million bought the altcoin at an average price of $2,538 are out of the money. Going by the laws stated above, Ethereum's price may be able to surpass the $2,500 region. If successful, the next level for ETH to reach could be around $2,645.
However, this prediction may not come to pass if ETH faces another round of selling pressure. The price may also drop if more staked tokens are released into circulation. If this happens, the cryptocurrency's value may drop to $2,421.
