Ethereum’s Price at Risk as 2 Institutions Sell ETH Holdings

According to on-chain data from Lookonchain, two major institutions have transferred millions worth of ETH to exchanges, which may indicate potential issues for the second-largest cryptocurrency.

At present, Ethereum is trading near $2,700 after a 5% increase over the last week.

Two institutions are offloading $ETH!

A wallet linked to #Cumberland deposited 11,800 $ETH ($31.88M) into #Coinbase seven hours ago. #ParaFiCapital withdrew 5,134 $ETH ($13.83M) from #Lido and transferred it to #CoinbasePrime six hours ago.

Address:… pic.twitter.com/zuOe68IIuJ

— Lookonchain (@lookonchain) September 28, 2024

As indicated in the tweet above, the institutions involved are Cumberland and ParaFiCapital. The former has deposited 11,800 ETH (approximately $32 million) into Coinbase, while the latter withdrew 5,134 ETH (around $14 million) from Lido and sent it to Coinbase Prime.

Both transfers to the largest US-based exchange occurred within a few hours earlier today.

It’s worth noting that ETH’s price faced a significant decline in early August under comparable circumstances. At that time, another notable ETH trader, Jump Trading, reportedly liquidated around $500 million worth of the asset, leading to a double-digit drop in price over a few days.

A week later, Jump Trading sold a smaller amount of 17,000 ETH (valued at $46 million at that time), causing Ethereum’s price to dip again, this time by about 3-4%.

This raises the question of whether the deposits by Cumberland and ParaFiCapital will result in similar price corrections for ETH, even though their amounts are considerably less than Jump Trading’s initial sell-off.

ETH has been performing well lately, alongside the overall market, having risen by 5% over the week and trading close to $2,700 for the first time since the previous correction.