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Cryptocurrency News Articles
Ethereum Faces Increased Selling Pressure as Chinese Government Begins Unloading Another $1.3B Worth of ETH
Oct 11, 2024 at 12:15 am
The Ethereum market faces increased selling pressure as the Chinese government begins unloading another $1.3 billion worth of Ethereum.
The price of Ethereum dropped on Monday after the Chinese government began selling another $1.3 billion worth of the cryptocurrency.
According to on-chain data analysis from OTC Research, the Chinese government transferred 542,000 Ether (ETH) within the last 24 hours. During this period, it transferred 15,700 ETH to an unknown address, triggering speculation of impending sales of the tokens seized from the multibillion-dollar PlusToken crypto ponzi scheme.
Additionally, the Chinese authorities sent another 7,000 Ether to addresses linked to various cryptocurrency exchanges. These actions have amplified the bearish sentiment in this market, which existed due to whale selloffs, including those by US spot Ether ETF issuers.
In early August, the remnants of ETH seized from the multibillion dollar PlusToken scheme awoke on-chain for the first time since 2021.
Over the last 24h about 7k ETH of the remaining 542k ETH ($1.3b) was sent to exchanges indicating intent to begin selling the remaining tokens. pic.twitter.com/tu2o7y4o4L
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
A Bearish Sentiment
Despite the market’s ability to absorb large transactions, the short-term outlook remains bearish. The price of Ethereum has dropped by 2.5% in the past 24 hours, currently trading around $2,374, per current Coingecko data.
In the past two months, Ethereum’s price has struggled to sustain a bullish momentum, repeatedly failing to break through resistance levels around $2,700. A rejection at this level once again pushed the price below $2,400.
Ethereum has been trying to rebound from the crucial support zone between $2,300 and $2,250, but sustained selling pressure, particularly from large holders like governments and ETF issuers, has hampered this recovery.
Technical analysts have noted potential bullish patterns in ETH’s price movements. According to a prominent analyst, Ali Martinez, ETH is forming a symmetrical triangle on the daily time frame, which often precedes a significant breakout.
Others have pointed out an inverted head and shoulders pattern, hinting that the digital asset could trigger a bullish run if it breaks through the $2,700 resistance level.
Each time #Ethereum breaks above the TD setup resistance trendline 🔴, a strong bull run follows. But when $ETH breaks below the TD setup support trendline 🟢, we've seen an average 53% correction.
The key support now is $2,250—losing it could trigger a significant price drop. pic.twitter.com/PljkRda78S
— Ali (@ali_charts) October 10, 2024
Ethereum Network’s Growth
Meanwhile, the broader Ethereum network has shown robust growth despite market volatility. Over 34.8 million Ether, or roughly 28.9% of the total circulating supply, is currently staked by validators to secure the network.
However, the short-term effects of significant whale selloffs—especially from the Chinese government—will likely keep Ethereum’s price down in the short term.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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