Over $350 million in Ethereum will be withdrawn in the next nine hours: the price of the crypto ETH could remain above 2,200 dollars, while at 20:00 a significant increase in selling pressure is expected.
Let’s see all the details below.
The price of the crypto Ethereum (ETH) risks falling
As anticipated, in the next nine hours, Ether tokens worth more than 350 million dollars will be unlocked, putting a crucial support level for the price of the crypto ETH at risk.
A total of 145,380 Ether, worth approximately 353 million dollars, will be available for withdrawal at 20:00 UTC. This creates a potential selling pressure for the second largest cryptocurrency in the world, according to the data from Token Unlocks.
Although the withdrawal of Ether does not necessarily imply an immediate sale, a considerable portion of these tokens could be liquidated on the market.
Even though the unlocking of 350 million dollars is significant, analysts at Bitfinex point out that withdrawals of this magnitude have become common after the Ethereum Merge and the updates of Shanghai.
The analysts have stated that this sum should not cause a crash of the market or a 10% reduction in the value of ETH.
This in the context of an asset with a market capitalization of 300 billion dollars and a daily volume of 24 billion dollars on the CEX.
The price of Ether has been declining for three consecutive weeks, reaching a five-month low below 2,200 dollars this week. This follows a sell-off of 510 billion dollars in the cryptocurrency market.
The loss of this level of psychological support could lead to further panic selling.
Could the validators increase the selling pressure on Ether?
The Ethereum validators are planning to cash in their tokens and staking rewards, potentially increasing the selling pressure.
Currently, there are another 360,000 Ether awaiting withdrawals from over 10,000 validators, which could introduce an additional 877 million dollars of selling pressure.
The recent collapse of Ether can be attributed to macroeconomic factors and specific industry dynamics, including the aggressive selling by Jump Trading.
According to a report by QCP Group, a major digital asset trading group based in Singapore, Jump Trading and Paradigm VC have sold ETH aggressively.
Triggering a chain reaction among the market makers, who tried to cover their positions.
In total, five of the main market makers sold 130,000 Ether, worth over 290 million dollars, contributing to the drop in the price of ETH from 3,000 to less than 2,200 dollars.
Some analysts believe that the price of Ether may have reached a local minimum.
The analyst Crypto Bullet compared the Ethereum cycles of 2017-2021 with the current ones of 2021-2024, suggesting that ETH is exactly where it should be based on historical patterns.
Other analysts, such as the popular Poseidon, predict that the market will hit the bottom soon, offering buying opportunities for ETH in the next two months.
The fractal patterns used by technical traders indicate key levels of support and resistance, suggesting potential trend reversals.
