Originally published on: August 05, 2024
The recent tumble in the crypto market has been attributed in part to the selling activities of market makers, who have collectively offloaded more than $300 million worth of Ether.
Major players in the market, including Wintermute, Jump Trading, Flow Traders, GSR Markets, and Amber Group, have been selling off significant amounts of Ether since August 3. This massive selling spree has coincided with Ether’s price dropping from $3,000 to below $2,200.
Wintermute led the pack, selling over 47,000 ETH, followed closely by Jump Trading with over 36,000 ETH. Flow Traders, GSR Markets, and Amber Group also joined in the selling frenzy, further contributing to the downward pressure on Ether’s price.
As Ether struggles to stay above the $2,200 mark, market analysts warn that continued selling by market makers and large holders could drive prices even lower, triggering panic selling among investors.
Despite the recent price crash, some traders remain optimistic about Ether’s future. MarketWizard, a well-known crypto trader, pointed out that Ether’s price could potentially double from its current low if historical patterns repeat themselves.
Interestingly, the launch of the first spot Ether exchange-traded funds (ETFs) in the U.S. has not had the desired impact on Ether’s price. In fact, since their launch, these ETFs have recorded over $511 million worth of net outflows, with Grayscale’s Ether ETF (ETHE) accounting for the majority of these outflows.
While Ether ETFs represent a significant regulatory milestone, they may not attract as much attention or inflows as Bitcoin ETFs, according to industry experts.
In summary, as market makers continue to offload massive amounts of Ether, the crypto market remains volatile and uncertain. Investors are advised to exercise caution and closely monitor market trends to make informed decisions.