A wallet linked to Hong Kong-based crypto exchange Hashkey has reportedly sold more than $90 million worth of Ethereum in the past 10 days. This massive selling activity appears to have triggered a slight decline in the ETH market, sparking speculation about the token’s price trajectory.
Crypto Whale conducts massive Ethereum sell-off
According to a Sunday post on Lookonchain notes that this wallet is linked to Hashkey, having received the majority of ETH sold by the Hong Kong-based exchange.
– Lookonchain (@lookonchain) November 19, 2023
At an average sale price of $2,047, wallet “0xD26e” proceeded to sell ETH on the Binance and OKX exchanges, withdrawing $89.6 million USDT and $12.95 million USDC in return.
As previously reported, ETH has fallen over 4% over the past week, likely in response to such massive selling pressure. However, the second-largest cryptocurrency has now found some stability, gaining 0.92% over the past day as it attempts to breach the $2,000 mark once again.
What’s next for ETH?
Looking at the daily chart of ETH, it appears that the selling spree by the “0xD26e” wallet could be a precaution against a significant drop in the value of the token. 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.
However, this downtrend will likely be short-lived, given the high level of investor interest currently surrounding the altcoin due to the frenzied race for Ether spot ETFs in the United States.
Friday, Fidelity Investments became the seventh and last giant to join the fight, after submitting its “Fidelity Ethereum Fund” proposal to the United States Securities and Exchange Commission (SEC).
Besides the Massachusetts-based company, other asset managers looking to launch an Ether Spot ETF include high-profile names such as BlackRock, Hasdhdex, Grayscale, VanEck and 21Shares and Ark.
More asset managers are expected to join the race over the coming weeks, leading to an increase in positive sentiments towards Ethereum.
Although SEC approval is still very subjective and uncertain, the sheer influx of Ether Spot ETF applications signals growing interest in the altcoin from traditional financial investors, which in turn is driving investment in any cryptocurrency.
For example, following reports of the filling of Blackrock on November 9, ETH gained almost 13% to trade above the $2,130 mark in response to the ensuing buying pressure.
At the time of writing, ETH is trading at $1,950, with a gain of 0.34% in the last hour, according to data from CoinMarketCap. Meanwhile, the token’s trading volume is down by 32.64% and is valued at $7. 32 billion.
ETH trading at $1.494 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image from Expert Investor, chart from Tradingview