Key Points
- Jump Trading has begun unloading its Ethereum holdings, potentially leading to a price drop below $2,500.
- Previously inactive Ethereum wallets, linked to China, have started moving a large number of coins worth $2 billion.
After a strong recovery of 20%, the price of Ethereum is struggling to maintain levels above $2,500.
Recent on-chain data reveals that Jump Trading has resumed selling its remaining Ethereum holdings.
Jump Trading Unloads Ethereum
Data from Spot on Chain indicates that Jump Trading has unstaked a total of 11,500 ETH, equivalent to $29 million, from Lido Finance.
In the same transaction, the firm redeemed 16,210 $WSTETH for 19,049 $STETH.
The 11,500 ETH was then transferred to the wallet address “0xf58”, a wallet frequently used by Jump Trading for deposits to centralized exchanges (CEXs).
Currently, Jump Trading retains 21,394 $WSTETH, valued at $63.6 million, and 16,292 ETH, worth $41.3 million.
The firm is also in the process of unstaking 19,049 $STETH from Lido Finance.
Large Ethereum Movements from China-linked Wallets
In another significant development, hundreds of Ethereum wallets, dormant for nearly 3.3 years, have started moving a large amount of Ethereum.
These wallets have moved a total of 789,533 ETH, valued at an impressive $2 billion.
On-chain analysis links these dormant addresses to a wallet known as “Plus Token Ponzi 2”.
This wallet moved 789,533 ETH to thousands of different wallets back in 2020, but has been silent since April 2021.
The wallets became active again recently, indicating significant activity associated with the Plus Token Ponzi scheme.
Interestingly, it appears that the Ethereum was seized by Chinese police during a crackdown in 2020.
As of the time of writing, the Ethereum price sits at $2,456 with a market cap of $295 billion.
However, market analysts speculate that another Ethereum price crash under $2,000 could occur as the altcoin retests this week’s earlier low.
