Ethereum (ETH) crashed to its lowest level since January 2024 early on Monday during Asian trading hours, reaching a low of about $2,100. This is even after the eagerly awaited spot ETH ETF launch. Large fund sell-offs are the main cause of Ethereum’s sharp decline, according to cryptocurrency expert DeFi Mochi. Important participants in the downturn, like Paradigm and Greyscale, made a substantial contribution.
Jump Trading Records Massive ETF Selloffs
Jump Trading’s trading division, Jump Crypto, which is a key participant in the cryptocurrency market, seems to be unwinding most of its positions.
Jump Crypto wallets have been moving millions of dollars in cryptocurrency to hot wallets on well-known exchanges including Binance, Coinbase, OKX, Bybit, and Gate.io, according to blockchain data obtained from Arkham.
Ethereum’s price has fallen significantly in the last day, falling 20% and reaching a low of $2,300. This move has coincided with the downturn.
According to reports, Jump Trading has been selling off Ethereum in big amounts, during the previous week, sales have come to around $300 million. The pressure on ETH, whose value has already dropped dramatically by 30% in the last week, has increased as a result of this event.
Arkham Intelligence research indicates that $481 million of the $587 million in cryptocurrency holdings in Jump Trading’s wallet are in the USDC stablecoin.
According to blockchain analytics company Spot on Chain, Jump Trading moved 17,576 ETH—or around $47 million—to centralised exchanges on the previous day. These transactions, which originated from Jump’s current ETH holdings, are thought to be a contributing factor to the sharp drop in Ethereum’s value. Ethereum is currently trading at $2,350.65, down more than 18% over the last 24 hours.
Massive ETH Selloff Amidst Larger Market Correction
This huge selloff by Jump Trading is part of a larger market selloff that started on Monday with a significant selloff in the Asian markets. There is growing fear about a possible U.S. recession, which is stressing the global financial system. The likelihood of a recession could sharply rise if the Federal Reserve does not carry out emergency rate reduction.
Even while the market is volatile, some industry observers—such as Ethereum specialist Anthony Sassano—have hypothesised that Jump Crypto’s possible withdrawal from the market could ultimately be a bullish indication. But in the near run, Jump’s actions have increased selling pressure and fuelled market volatility in general.