Ethereum Price Surges Despite Jump Trading Sell-Off, ETF Inflows, and Death Cross
Ethereum’s price recovery has persisted despite Jump Trading resuming its token sales this week. ETH surged to $2,753 on Wednesday, marking a significant upturn since August 4, with a 30% increase from its recent low.
The resurgence of Ethereum was mirrored by other cryptocurrencies. Bitcoin, a key market influencer, climbed to $61,000, while the overall market capitalization of digital assets reached $2.15 trillion.
Even as Jump Trading continued to offload its Ether holdings, Ethereum’s rally remained robust. Notably, the company retrieved 17,049 Ether tokens valued at $46.4 million from Lido and subsequently sold them off.
Jump Trading’s ongoing token sales have been a contributing factor to Ethereum’s recent market volatility, particularly during the crypto Black Monday event, where Ethereum experienced a more significant decline compared to Bitcoin and other digital currencies.
Arkham’s data reveals that Jump Trading still possesses substantial cryptocurrency assets, including 24,919 Ether tokens, 28,735 stETH tokens, and 675 wETH coins, totaling over $423 million in value.
Investor interest appears to be returning to spot Ethereum ETFs, as indicated by net inflows exceeding $24.3 million into these investment vehicles. Notably, BlackRock’s Ethereum ETF attracted $49.1 million, pushing its total assets under management to $843 million, with potential to surpass the $1 billion mark in the near future.
Furthermore, Fidelity’s FETH fund held $5.4 million in assets, while Invesco’s QETH had $813,000. Conversely, Grayscale’s Ethereum Trust experienced outflows exceeding $31 million, while its mini trust amassed over $981 million in assets due to its competitive fee structure.
Despite the positive market sentiment, Ethereum faces a potential downside risk due to the formation of a death cross pattern on the daily chart, where the 50-day and 200-day Simple Moving Averages intersected on August 7. To validate further upside potential, Ethereum must surpass the critical resistance level at $2,833 and solidify it as a support level, which has historical significance as a key swing point and neckline of a triple-top pattern.
Conversely, breaching last week’s low of $2,114 could signal a bearish trend continuation, indicating prevailing selling pressure on Ethereum.
