Key Points
- Ethereum [ETH] is under pressure due to external factors and the movement of PlusToken Ponzi scheme wallets.
- Reports of a potential $2 billion worth of ETH transfer has increased market fears and selling pressure concerns.
The cryptocurrency market has been going through a tough phase recently, and Ethereum [ETH] has been significantly affected by external factors. One of the key factors contributing to Ethereum’s troubles is the recent movement of wallets linked to the PlusToken Ponzi scheme.
PlusToken’s $2b ETH Transfer
Reports have emerged that Ethereum wallets associated with the PlusToken Ponzi scheme, which operated from 2018 to 2019 in China, have been active. This scheme led to Chinese authorities seizing $4 billion in crypto, and now, after more than three years, the wallets have reportedly moved.
In 2020, Chinese authorities seized 833,083 ETH worth over $2 billion at current market rates. These reports first appeared from Lookonchain, which also mentioned that hundreds of wallets linked to the PlusToken Ponzi scheme were in motion.
However, it was clarified that most of the ETH were already seized, and only about $63 Million worth of ETH is currently moving. EmberCN clarified this through some accounts, stating that roughly 12 addresses related to PlusToken had collected ETH in the last 30 hours.
On the other hand, Arkham Intelligence disputed this analysis, claiming that more than $450 million in ETH moved in the past 24 hours. These conflicting reports have left ETH investors, traders, and analysts worried about potential selling pressure.
ETH Market Impact
Ethereum has faced extreme fluctuations following the market crash on 5th July, hitting a low of $2116. The recent news of a potential $2 billion worth of ETH transfer has increased market fears and selling pressure concerns.
This news has led to a decrease in trading volume by 4.56% to $23.6 billion and a market cap decline of 3.59% to $291.1 billion. At the time of writing, ETH was trading at $2,421 after a 3. 35% decline on daily charts. The altcoin’s market cap has also declined by 3.79% to $290.8 billion in the last 24 hours.
According to analysis, the decline is not an isolated sell-off after the PlusToken movement but wider price corrections. The relative strength index was also at 26, an oversold zone suggesting that ETH has experienced massive selling pressure.
Furthermore, analysis of Cryptoquant shows exchange outflow has declined over the past seven days, indicating traders are keeping their assets liquid for potential selling. This suggests a lack of confidence in ETH’s long-term prospects. Additionally, data from Coinglass shows ETH’s open interest has declined over the past seven days.
Despite the movement of the PlusToken Ponzi scheme held ETH, Ethereum has already been experiencing a decline. Therefore, the current price action is not solely due to the PlusToken Ponzi scheme transfers.
