Bitcoin and other cryptocurrencies continue to move sideways. Meanwhile, platforms that hold large amounts of crypto money are taking action for sales. In this article, we will talk about a sale on the leading altcoin Ethereum. Here are the details…
Jump Crypto fund is behind the drop for the leading altcoin
Ethereum’s reversal from the local resistance level was not what most of the market expected during the weekend trading session in the cryptocurrency market. However, on-chain data clearly shows why the second-largest cryptocurrency has crashed so unexpectedly. According to Nansen’s data, the Jump Crypto fund has deposited more than 2,850 ETH on various centralized exchanges, liquidating almost all of them in the past 24 hours, causing a sharp drop in prices.
https://twitter.com/DataaRocks/status/1597067232382570496
Previously, various on-chain detectives speculated about Jump Crypto’s links to crashed FTX exchanges and the amount of funds the investor was holding on the crypto trading platform. Given the illiquid state of the market and Jump’s potential problems with credibility, as we’ve reported, a significant loss from the stock market crash would have been the final blow to the exchange’s ability to meet its current obligations to creditors.
Cryptocurrency market relies on selling pressure
Since the beginning of November, Ethereum has had to withstand massive selling pressure from multiple assets, including FTX and Jump Crypto. Ethereum has been the most liquid asset among the above-mentioned assets. Therefore, the market saw a spike in ETH sales right after the rumor surfaced that both assets went bankrupt.
As Jump’s 2,850 ETH should not be an issue for Ethereum liquidity, and ETH’s price drop is mostly due to a lack of depth in the weekend market, the cryptocurrency is currently seeing a gradual drop in selling pressure. Currently, Ethereum is changing hands at $1,169, down 3.5 percent. The coin rose 4.6 percent in 7 days.
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