Is Ethereum’s Price About to Dump as These 2 Institutions Are Selling ETH Holdings?
Previous similar events have led to substantial corrections for ETH.
On-chain data provided by Lookonchain asserted that two prominent institutions have sent millions worth of ETH to exchanges, which could suggest trouble for the second-largest cryptocurrency.
Currently, Ethereum trades close to $2,700 after gaining 5% within the past week.
As the tweet above reads, the two institutions in question are Cumberland and ParaFiCapital. The former deposited 11,800 ETH (worth almost $32 million) to Coinbase, while the latter withdrew 5,134 ETH (nearly $14 million) from Lido and sent the funds to Coinbase Prime.
Both of those transfers toward the largest US-based exchange happened in the span of a few hours earlier today.
Recall that ETH’s price tumbled hard in early-August under similar circumstances. Back then, another prominent ETH investor, Jump Trading, reportedly sold approximately $500 million worth of the asset, whose price tumbled by double digits in days.
A week later, the company sold a more modest portion of 17,000 ETH (worth $46 million at the time), and Ethereum’s price slipped once again, this time by around 3-4%.
Consequently, the question arises whether the deposits by Cumberland and ParaFiCapital will lead to similar price corrections for ETH, even though they are a lot smaller than Jump Trading’s first.
ETH has been on a roll lately, alongside the broader market, having surged by 5% weekly and trading close to $2,700 for the first time since the aforementioned correction.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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