Top market players have recently been dumping their ETH amid criticism of the slow growth within the Ethereum ecosystem. On-chain data shows that Hong Kong-based asset manager Metalpha has liquidated 37.5% of the ETH holdings in just the last four days. Well, if Metalpha continues selling at the same rate, it might liquidate all of its holdings by the end of this week.
Metalpha on Ethereum Selling Spree
Bitmain-affiliated Hong Kong-based asset manager Metalpha deposited 10,000 more Ethereum, worth $23.5 million, to crypto exchange Binance in the past few minutes. On-chain analytics platform LookonChain stated that in the last four days, Metalpha has deposited a total of 33,589 ETH, worth around $77.55 million, to the exchange.
However, it turns out that the firm still holds 51,300 ETH, valued at roughly $120 million in its treasury. But if the asset manager continues to sell at the same rate, it can empty its Ethereum stash by the end of this week.
Metalpha deposited 10,000 $ETH($23.45M) again 15 mins ago.#Metalpha has deposited a total of 33,589 $ETH($77.55M) to #Binance in the past 4 days and currently holds 51.3K $ETH($120M).https://t.co/fTHHLpCEfr pic.twitter.com/SAJYTaSPp0
— Lookonchain (@lookonchain) September 10, 2024
The significant deposits have drawn the attention of market analysts and the crypto community, as large transactions like these can impact the ETH price. While such actions may result in short-term price fluctuations, their long-term effects remain uncertain.
Interestingly, this ETH dump comes at a time when both the Ethereum Foundation and Vitalik Buterin have been reducing their ETH holdings in the past few weeks. On the other hand with the Ethereum revenue dropping significantly, the broader market sentiment has taken a hit.
ETH Price Shows Resilience to Dumping
As of press time, the ETH price is trading 1.92% up at $2,345 levels with its market cap above $282 billion. This comes as the broader crypto market shows recovery ahead of the US CPI data for August.
Market analysts remain optimistic about ETH, stating that if the US macros support and the Fed proceeds with the interest rate cut decision next week, there’s a high likelihood of a 75% ETH price rally all the way to $3,500 levels.
Although big players like Metalpha, Ethereum Foundation and Vitalik Buterin have been moving their ETH to exchanges, CryptoQuant data suggests a negative net flow exceeding 40,000 ETH on derivative exchanges.
This indicates a significant withdrawal of ETH from these platforms, which may suggest reduced selling pressure or a decline in borrowing for new short positions. Analysts believe this could signal a potential shift in market sentiment for ETH.
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