Key Points
- BlockTower Capital has sold $25 million worth of Ethereum (ETH) amid a market rebound for the cryptocurrency.
- The large-scale sell-off raises questions about the sustainability of Ethereum’s recent price gains.
BlockTower Capital, a prominent crypto venture capital firm, has recently offloaded Ethereum (ETH) worth $25 million. This sale was carried out on August 13, during a period of broader market recovery for ETH, which is currently testing the $3,000 resistance level.
This move by BlockTower Capital, a company recognized for its strategic investments in the digital assets sector, has sparked concerns about the durability of Ethereum’s recent price increases.
Details of the Sale
The sale by BlockTower Capital entailed the disposal of 9,232 ETH, estimated to be worth around $24.8 million. The sales were carried out across multiple trading platforms, including FalconX, B2C2 Group, Wintermute Trading, and Cumberland.
This liquidation by BlockTower Capital comes at a time when institutional investments in crypto seem to be decreasing, as evidenced by a recent downturn in the broader market.
Ethereum Whale Activity
Adding to the pressure on Ethereum’s price is the activity of one of the oldest Ethereum whales. This whale has been selling off large amounts of ETH in recent weeks, including a sale of 5,000 ETH on August 12, valued at $13.2 million. Over the past month, this whale has sold 48,500 ETH, worth approximately $154 million, contributing to the downward pressure on Ethereum’s price.
Despite these bearish trends, there are indications of renewed buying interest from certain investors. Notably, a whale who was previously liquidated during the market crash on August 5, losing 2,890 wstETH (worth $8.06 million), has re-entered the market with a bullish stance.
Since August 11, this investor has borrowed $6.6 million in DAI, $2.7 million in USDT, and $2.5 million in USDC to purchase 4,459 ETH, valued at $11.8 million, at an average price of $2,646.
Ethereum’s Price Movement
At present, Ethereum is trading around $2,642, having faced rejection at the $2,700 resistance level. The cryptocurrency has managed a modest 2% gain in the past 24 hours and a 7.5% increase over the past week.
This upward momentum is partially driven by increased inflows into Ethereum exchange-traded funds (ETFs). Data from SoSo Value shows a daily net inflow of $4.93 million into US-listed spot Ether ETFs on Monday. Fidelity’s FETH led the way with $3.98 million in inflows, followed by Franklin Templeton’s EZET, which brought in $1 million, and Bitwise’s ETHW, contributing $2.86 million in positive flow. Notably, Monday’s inflows have broken the 3-day streak of outflow from these funds.
Looking forward, if Ethereum can successfully break through the $2,700 resistance, it could pave the way for an upward movement. Such a breakout could potentially send the price towards the $4,000 mark. This would be a significant recovery, though still short of Ethereum’s all-time high of $4,891, achieved in 2021.
