tl;dr
The Chinese government's offloading of 7,000 ETH seized from the PlusToken scam has caused Ethereum's price to drop, sparking speculation about the potential sale of the remaining 542,000 ETH. Analysts warn of a larger selloff as wallets linked to the scam have begun moving funds after nearly three ...
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Ethereum price faces selling pressure as Chinese government prepares to sell 7,000 ETH seized from PlusToken scam
Chinese government's potential sale of 542,000 ETH sparks speculation and warns of larger selloff
Analysts predict strong selling pressure on Ethereum price, potential crash below $2,000
The Chinese government's offloading of 7,000 ETH seized from the PlusToken scam has caused Ethereum's price to drop, sparking speculation about the potential sale of the remaining 542,000 ETH. Analysts warn of a larger selloff as wallets linked to the scam have begun moving funds after nearly three years of dormancy. This development could lead to strong selling pressure on Ethereum, potentially pushing its price below $2,000. Additionally, recent ETH whale selling has dampened investor sentiment, with the price already trading below $2,400.
Earlier today, the Ethereum price came under some selling pressure slipping over 2% under $2,400 levels as the Chinese government reportedly moved a total of 7,000 ETH to exchanges, worth over $16.7 million. This happened as investors started observing some movements in the wallets linked to the multi-billion dollar Ponzi scheme PlusToken.
CHINESE GOVERNMENT TO SELL 542,000 ETH?
The latest development has sparked speculations that the Chinese government would be ultimately selling the rest of the 542,000 ETH, worth over $1.3 billion, seized from the PlusToken Scam. This could send the Ethereum price spiraling downwards under $2,000.
Analyst at OXT Research ErgoBTC reported that the Chinese wallets linked to the scam have been moving funds in recent times after staying dormant for nearly three years since 2021. PlusToken was a Chinese multi-billion dollar crypto scam that defrauded a massive 2.6 million users back in 2018 and 2019. Back then, the local Chinese police had confiscated $14 billion worth of BTC, ETH, and other altcoins.
Earlier this year in July, following the Bitcoin selloff by the German government, the BTC price faces significantly selling pressure. Despite the selloff value was much smaller to the over BTC market cap, the even significantly dampened the market sentiment. If the Chinese government pulls off such selloff with 542,000 ETH, the Ethereum price can face strong selling pressure under $2,000. Currently the ETH price is already trading 2% down slipping under $2,400 levels.
Earlier this week, crypto analyst Ali Martinez stated that ETH has been trading in a close symmetrical pattern. Thus, any drop under $2,300 could further lead to a major crash to $1,800 levels. Furthermore, the Ethereum whale selling has continued over the past week from dormant holders that dampens the investor sentiment.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bhushan Akolkar
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