A wallet linked to Hong Kong-based crypto exchange Hashkey has reportedly sold more than $90 million worth of Ethereum in the past ten days. This massive selling activity appears to have caused a slight decline in the ETH market, sparking speculation about the token’s price trajectory.
Crypto Whale Conducts Massive Ethereum Selloff
According to a Sunday message on Lookonchain notes that this wallet is related to Hashkey, having received the majority of ETH sold from the Hong Kong-based exchange.
A wallet related to #Hash key dumped 50,115 $ETH($97.7 million) in the last 10 days.
Wallet “0xD26e” has deposited 50,115 $ETH($97.7 million). #Binance And #OKXsubsequently withdrew 89.6 million $USDT and 12.95 million $USDC.
The average sales price is probably $2,047.https://t.co/qYLUghQetE pic.twitter.com/Nj4LzeytUu
— Lookonchain (@lookonchain) November 19, 2023
With an average sale price of $2,047, wallet “0xD26e” conducted its ETH sell-off on the Binance and OKX exchanges, withdrawing $89.6 million USDT and $12.95 million USDC in return.
As previously mentioned, ETH fell more than 4% this past week, which is likely a response to massive selling pressure. However, the second largest cryptocurrency has now found some stability and is up 0.92% over the past day as it tries to cross the $2000 mark again.
What’s next for ETH?
Looking at the daily chart of ETH, it seems that the sell-off of wallet “0xD26e” could be a precaution against an upcoming significant drop in the token’s value. After all, the Relative Strength Index indicates that ETH has just left the overbought zone and could suffer even more losses in the coming days.
Although this downtrend is likely to be short-lived given the high investor interest in the altcoin at the moment due to the buzzing Ether spot ETF race in the United States.
On Friday, Fidelity Investments became the seventh and latest asset management giant to join the fray after filing its ‘Fidelity Ethereum Fund’ proposal with the US Securities and Exchange Commission (SEC).
In addition to the Massachusetts-based company, other asset managers looking to launch an Ether Spot ETF include prominent names such as BlackRock, Hasdhdex, Grayscale, VanEck, and 21Shares and Ark.
It is expected that other asset managers will join the race in the coming weeks, leading to a rise in positive sentiments towards Ethereum.
While SEC approval is still highly subjective and uncertain, the mere influx of Ether Spot ETF applications signals increasing interest in the altcoin from traditional financial investors, which in turn drives investment in any cryptocurrency.
For example, following reports of Blackrock filling on November 9, ETH rose nearly 13% to trade above $2,130 in response to the buying pressure that followed.
At the time of writing, ETH is trading at $1,950, with a gain of 0.34% in the past hour, according to data from CoinMarketCap. Meanwhile, the token’s trading volume is down 32.64% and valued at $7. 32 billion.
ETH trading at $1.494 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image of Expert Investor, chart from Tradingview