Ethereum Price Crash After Crypto: A big sale of $25 million worth of Ethereum (ETH) was recently carried out by BlockTower Capital, a popular venture capital firm specializing in cryptocurrency. The price of ETH has been rising recently, and this development raises the possibility of a return to $3,000. Other whale moves also impacted the price, as an investor in an initial coin offering (ICO) sold more than $154 million worth of Ethereum.
BlockTower Capital Dumps $25M Ethereum
On Tuesday, August 13, BlockTower Capital sold 9,232 ether, estimated to be worth around $24.8 million. FalconX, Cumberland, Wintermute Trading, and B2C2 Group are well-known cryptocurrency trading platforms utilized to accomplish these transactions. The sales were broken down into the following categories specifically:
- 3,537.81 ETH via FalconX
- 2,954.28 ETH through B2C2 Group
- 2,090.24 ETH via Wintermute Trading
- 639.28 ETH on Cumberland.
The crypto community is worried and speculates about this abrupt liquidation because it comes at a time when institutional buying interest is generally declining. On Monday, the price of Bitcoin fell by 4.5%, marking the latest significant dip in the crypto sector.
Additionally, institutions seem to have retreated from making substantial investments in the market so that this autumn could be part of a bigger pattern. According to Lookonchain, a blockchain analytics company, institutional investors have reportedly ceased receiving substantial quantities of Tether (USDT) from the Tether Treasury and transferring it to prominent exchanges such as Kraken and Binance. Three days ago, institutional investors stopped buying USDT.
Ether ICO Whale & Plus Token Saga
Even more bad news for the market is that a well-known Ethereum whale has kept its aggressive selling. This whale has been selling off huge quantities of Ether recently; they obtained one million ETH during the Ethereum ICO when each token was worth only $0.31. The whale dropped a further 5,000 ETH, or about $13.2 million, on the OKX cryptocurrency market on August 12. The whale has made sales of 48,500 ETH, or almost $154 million, in the last 30 days.
A new analysis by EmberCN has found substantial Ethereum transfers associated with the bankrupt Bidesk exchange, further confusing the market dynamics. A total of 789,534 ETH was sent to Bidesk from different wallets between June and September 2021. Later that year, these assets were transferred to the Huobi exchange after Bidesk’s insolvency. It is worth mentioning that 268,843 ETH were sent to Bidesk from four separate deposit locations. But some assets never make it to Bidesk, and others have been withdrawn but haven’t made it to Huobi yet.
A large chunk of these Ethereum assets went to 12 addresses associated with the Plus Token ponzi scheme, according to the research. The whale dumped an additional 5,000 ETH last week, at the same time as a transfer of $63.1 million worth of Ethereum.
According to EmberCN’s speculation, the Chinese government might have sold a significant amount of the 789,534 Ether in 2021. This data points to the possibility that the market was unaffected by the recent transfer. People are being more careful with their money now. This transfer has happened; whale dumps are still happening, and interest in Ether ETFs is down.
Also Read: Crypto Market Recovers From Steep Correction, Here’s Why
Another ETH Price Crash Looming?
Technical analysis shows that after failing to break through the $2,700 barrier, the price of ETH is now circling $2,656. At the same time, we are at the 78.6% Fibonacci level of retracement. The 50-day Exponential Moving Average (EMA) has crossed below the 200-day EMA, indicating. A possible impending death cross and this rejection adds to that pessimism. Many traders consider a death cross a strong sell signal, and they may decide to sell their positions or tighten their stop-loss orders when they observe this. The Moving Average Convergence Divergence (MACD) is another indicator currently showing. A sell signal, as it is locked in negative territory.
The negative MACD reading adds fuel to the fire for Ether short sellers. Specifically, as mentioned earlier by Coingape, it would be considered bearish if the price drops below the short-term support level of $2,500. The death cross’s effects could be amplified if this support is broken, leading to a sell-off toward the $2,000 mark. Ethereum has been trading near $2,100 recently, suggesting that a break below $2,000 is still possible. Though Ethereum’s price lacks significant support above $2,500, the IOMAP model indicates a clear route to $3,000 for a rebound.
Rapid price appreciation might be in store for Ethereum if it manages to break through the $2,700 barrier. This may signal the beginning of a new bullish trend, during which the price could rise to $4,000 or even higher. On the other hand, X-crypto expert CrediBULL. Crypto forecasted that Ether would fall before reversing course, breaking above $3,000 and $3,600.
 was recently carried out by BlockTower Capital...){kind=link}