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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 10, 2024 08:29 UTC
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China Set for 542k Ethereum Sell-Off: Will the Crypto Market Crash?
Following a Bitcoin dip, Ethereum price dropped 2% in the past 24 hours.
The Chinese government is selling seized Ether, adding to selling pressure.
Ethereum price is forming a potential bullish reversal pattern, suggesting a possible rebound.
Following Bitcoin’s (BTC) dip to $61k, which led to similar declines across most altcoins, Ethereum (ETH) experienced a drop of around 2% in the past 24 hours. As of Thursday, October 10, during the mid-London trading session, ETH was trading at approximately $2,394. The large-cap altcoin has a fully diluted valuation of about $288 billion and an average daily trading volume of $14.2 billion. Over the past three months, it has shown signs of a potential reversal.
Things can’t be so straightforward – can they? Read on for the twists.
China to Sell More Ether?
The Ethereum market may face additional selling pressure as the Chinese government plans to sell the remaining 542k Ether seized from the Plustoken Ponzi scam. On-chain data indicates that 15.7k ETH was recently moved to another wallet address, raising concerns about a possible sell-off.
Additionally, the Chinese government has deposited 7k Ether into various crypto exchanges, likely in preparation for sales. Experts believe more Ether sales are likely as the government continues to liquidate these assets.
Institutional Demand Weakens Amid Heavy Sales
Ethereum has been under significant selling pressure, particularly due to decreased demand from institutional investors. The Ethereum Foundation has also sold a notable amount of ETH, adding to the pressure. Furthermore, U.S. spot Ether ETFs have recorded over $561 million in net cash outflows since receiving regulatory approval.
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Midterm Expectations
From a technical standpoint, Ethereum’s price has been forming a symmetrical triangle pattern, which often signals a bullish breakout. An inverted head-and-shoulders (H&S) pattern is also emerging on the daily chart, along with a bullish divergence on the Relative Strength Index (RSI).
With over 28% of Ethereum’s circulating supply locked in staking to secure the network, ETH may be positioned for a bullish rebound before the end of the year. Many market analysts believe this staked supply could limit selling pressure and support a price recovery in the coming months.
With the Chinese government’s actions and the broader market sentiment, where do you see Ethereum’s price heading in the near future?
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