Wintermute, a crypto market maker, is dumping Ethereum. As they resume their August activities, will ETH USD slip below $2,000?
The crypto market is under immense selling pressure.
Down nearly 2.8%, shaving market cap in billions to around $2.21 trillion, Ethereum, Bitcoin, and altcoin holders are in pain.
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While there is a risk of Bitcoin dropping below the psychological $60,000 level, eyes are on Ethereum.
Ethereum Price Freefalling – What’s Next?
Similar to the world’s most valuable coin, ETH prices are under immense selling pressure, and the sell-off, especially in the top 10, has been more rapid.
To put in the numbers, Ethereum is down roughly 11% in the past week of trading. At this pace, ETH is among the top losses in the top 10, trailing XRP.
Technically, traders are confident of what lies ahead.
From the daily chart, prices are still inside the September 2024 trade range, and the uptrend remains.
If there is a sustained close below $2,400 by the end of the day, cracks would have begun forming.
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However, if there are gains, lifting prices above the local resistance, formerly support, toward $2,500, it would be a shot in the arm for buyers.
The problem bulls have to face in the coming days is the impact of top crypto market makers dumping ETH.
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Wintermute Sends ETH To Binance: More Pain Incoming?
Earlier today, Wintermute, which is facing a lawsuit from the United States SEC, sent ETH to Binance.
Often, transfers to any crypto exchange, especially from a whale, can be interpreted as an intention to sell.
As a crypto market maker, Wintermute is a whale whose activities are closely watched.
According to The Data Nerd, Wintermute has deposited 14,221 ETH to Binance in the past 24 hours alone.
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That Wintermute is sending ETH to Binance should be a concern.
In August, top crypto market makers, including Jump Trading, Flow Traders, and Winterute, cumulatively sold over 130,000 ETH.
The decision saw ETH prices flash-crash, sliding to as low as $2,100 in early August before recovering.
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Interestingly, the recovery coincided with these whales pausing their ETH dumping activities, relieving the market from the deluge in selling pressure.
It remains to be seen what happens next.
Altogether, Wintermute selling, especially when the market is weak, raises the possibility of ETH sinking below August lows.
The slow inflows from spot Ethereum ETFs make the situation even worse.
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Although there was a net inflow of $14 million as of October 2 after BlackRock bought more ETH, the cumulative outflow exceeds $557 million, looking at Soso Value.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.