By Key Points
- China transfers 7,000 ETH to exchanges, signaling a potential sell-off.
- These coins are part of a 542,000 ETH stash seized from a 2018 Ponzi scheme.
- Ethereum sell-off fears weigh on the market; price drops nearly 2%.
- Exchange reserves surge, indicating potential upcoming volatility.
Ethereum is facing intensified sell-off concerns as Chinese authorities move 7,000 ETH to exchanges, potentially leading to a substantial market impact.
The transfer is part of the 542,000 ETH stash seized in 2018 from the PlusToken Ponzi scheme, which now casts a shadow over the cryptocurrency market.
At press time, Ethereum traded at $2,401, reflecting a nearly 2% drop in the past 24 hours. The broader crypto market is also under stress, with the Fear and Greed Index dipping to a seven-day low of 39, indicating a bearish sentiment.
This development, coupled with the looming Ethereum sell-off, has left investors on edge.
😳📉 #Ethereum pareciera puede caer en picada tras la decisión del gobierno chino 🇨🇳 de vender $1.3B en #ETH y ventas masivas por #ETFs de EE.UU 🇺🇸. ¿Es esto el principio del fin o una oportunidad de compra? #Criptomercado en alerta. 🚨💰
👥 La comunidad cripto debate:… pic.twitter.com/BgVemTyqCo
— Noticiacripto (@NoticiacriptoC) October 10, 2024
China’s ETH Moves Could Trigger Massive Sell-Off
Chinese authorities seized 542,000 ETH, worth over $1.3 billion, from the notorious PlusToken scam, which had previously swindled funds from thousands of investors.
Recently, these assets were moved across multiple wallets in August 2024, sparking fears of an imminent Ethereum sell-off.
According to on-chain researcher ErgoBTC, authorities withdrew approximately 15,700 ETH from these wallets, with almost half being sent to major exchanges such as Binance, BitGet, and OKX.
This pattern mirrors earlier moves by Chinese authorities to offload Bitcoin between 2019 and 2020, causing concerns about a potential surge in Ethereum sell-off pressure.
CryptoQuant data also shows a significant increase in Ethereum exchange reserves, with a 110,000 ETH rise in the past 24 hours alone.
The spike in exchange reserves, particularly on derivatives platforms, hints at the likelihood of increased volatility as traders prepare for potential price movements.
Further deepening the Ethereum sell-off fears, large transaction data from IntoTheBlock indicates a rise in whale activity.
These substantial transactions suggest that big players are positioning themselves for liquidations rather than accumulation, signaling that market sentiment remains firmly on the sell side.
Coinglass reports that over $31 million worth of Ethereum was liquidated in the past 24 hours, with the majority being long liquidations.
This pattern aligns with the recent influx of ETH on exchanges and indicates that selling pressure could heighten in the near term, adding to market turbulence.
