In a significant move within the cryptocurrency market, Hong Kong-based asset manager Metalpha has intensified its selling of Ethereum (ETH), depositing over 33,589 ETH to Binance over the past four days. This comes amid broader ETH liquidations, with both the Ethereum Foundation and Ethereum co-founder Vitalik Buterin reducing their holdings.
Metalpha’s Ethereum Selling Frenzy
Metalpha, affiliated with mining giant Bitmain, has already liquidated 37.5% of its Ethereum holdings in less than a week. In its latest action, Metalpha transferred an additional 10,000 ETH (valued at $23.5 million) to Binance, following a spree of deposits that total around $77.55 million in ETH.
According to on-chain data from analytics platform LookonChain, Metalpha still holds approximately 51,300 ETH, valued at around $120 million. At its current rate of selling, the firm could offload its entire Ethereum reserves by the end of this week, raising concerns about potential short-term market volatility.
The crypto community and market analysts are closely monitoring these large-scale transactions, as they can significantly impact ETH prices. While these moves can cause temporary price fluctuations, the longer-term effects of Metalpha’s sell-off remain uncertain.
Market Impact and Broader Trends
Interestingly, Metalpha’s massive ETH sales come at a time when the Ethereum Foundation and Vitalik Buterin have been decreasing their holdings, adding to the broader market conversation about Ethereum’s slow ecosystem growth. Additionally, Ethereum’s revenue has seen a decline, further dampening overall market sentiment.
Despite this flurry of sales, the price of ETH has shown resilience. At press time, ETH is trading up by 1.92% at $2,345, with a market capitalization exceeding $282 billion. This uptick comes as the crypto market shows signs of recovery ahead of key U.S. inflation data for August.
Analysts Remain Bullish on Ethereum
Even with large players like Metalpha and the Ethereum Foundation moving their ETH to exchanges, market analysts remain optimistic. Some predict that if U.S. economic conditions are favorable and the Federal Reserve moves forward with an interest rate cut, Ethereum’s price could rally by as much as 75%, potentially reaching $3,500.
Furthermore, CryptoQuant data reveals a negative net flow of over 40,000 ETH on derivative exchanges, suggesting significant withdrawals from these platforms. This reduction in ETH supply on exchanges could indicate a decrease in selling pressure or a drop in borrowing for short positions. Analysts believe this shift may reflect improving market sentiment for Ethereum, despite the current wave of high-profile sell-offs.
As the week progresses, all eyes will be on Metalpha’s actions and their potential impact on Ethereum’s price trajectory.
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