Key Takeaway:
- Ethereum price recovered despite Jump Trading selling its tokens.
- Bitcoin rose to $61,000, impacting the overall market cap of cryptocurrencies.
- Jump Trading sold Ether worth $46.4 million and still holds assets over $423 million.
- Investors are moving back to spot Ethereum ETFs, resulting in net inflows.
- Ethereum faces a risk of downside due to a death cross pattern on the daily chart.
Ethereum Price Recovery Amid Jump Trading Token Sale
Despite Jump Trading resuming the sale of its Ether holdings, Ethereum’s price saw a rebound reaching $2,753. This recovery was accompanied by an overall positive trend in the cryptocurrency market, with Bitcoin reaching $61,000 and the combined market cap rising to $2.15 trillion.
Jump Trading Token Sale Impact on Ethereum
Jump Trading sold 17,049 Ether tokens worth $46.4 million from Lido, contributing to Ethereum’s price drop during the recent crypto Black Monday. The company still holds significant assets, including 24,919 Ether tokens, 28,735 stETH tokens, and 675 wETH coins, totaling over $423 million.
Investor Movement to Spot Ethereum ETFs
Investors are increasingly moving back to spot Ethereum ETFs, with net inflows recorded in various funds. Notably, BlackRock’s Ethereum ETF received significant inflows, potentially reaching the $1 billion mark in the near future. However, Grayscale’s Ethereum Trust saw outflows, while Fidelity’s FETH fund and Invesco’s QETH fund also attracted assets.
Risk of Downside for Ethereum Due to Death Cross Pattern
Ethereum faces a potential downside risk as it forms a death cross pattern on the daily chart, with the 50-day and 200-day Simple Moving Averages crossing on Aug. 7. To confirm upside momentum, Ethereum must surpass the crucial resistance level at $2,833, while a drop below $2,114 could signal further bearish pressure.
