Key Points
- Jump Trading has increased its Ethereum sell-off, which could negatively affect the cryptocurrency’s price.
- Despite the sell-off, many Ethereum holders are still “in the money,” indicating potential for price recovery.
Jump Trading, a well-known crypto market maker, has been reported to have accelerated its sale of Ethereum (ETH) assets.
Jump Trading’s Strategy Shift
This move signifies a major change in Jump Trading’s approach, as the company starts to unload more of its Ethereum holdings during a period of market turbulence.
According to a post from Lookonchain, Jump Trading claimed 17,049 ETH ($46.44M) from Lido and moved it out for sale. The firm still has 21,394 wstETH ($68.58M) left.
Additional Developments
Spot On Chain also recently reported that Jump Trading has swapped 21,394 wstETH for 25,156 stETH, but has not made immediate withdrawal requests from Lido Finance as it had previously. Currently, the firm holds around $148 million in Ethereum assets, with 24,993 ETH in wallet 0xf58, and 29,093 stETH staked with Lido.
The recent increase in sell-offs coincided with Kanav Kariya’s departure from Jump Crypto, following the launch of a CFTC investigation into the firm in June.
Community members have expressed mixed reactions to Jump Trading’s actions. Some users believe that the firm’s selling strategy will backfire, while others see it as a manipulation tactic to buy more at a lower price.
Despite concerns about a potential drop in Ethereum’s price due to Jump Trading’s sell-offs, recent data paints a more complex picture. At the time of writing, ETH was trading at $2,728, reflecting a modest 0.82% increase in the past 24 hours.
While the Relative Strength Index (RSI) remained below the neutral threshold, indicating lingering bearish sentiment, analysis revealed a more optimistic scenario. A significant majority of ETH holders—66.74%—were “in the money” at press time, meaning their holdings were valued above their initial purchase price. This contrasts with the smaller 30.43% who were “out of the money.”
