Ethereum Sell-off Fears Rise As Crypto Hedge Fund Moves $60M ETH To An Exchange

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When Ethereum retests a key resistance level, it runs the danger of being overbought on shorter timeframes, which might lead to selling pressure.

On May 30th, the native currency of Ethereum, Ether (ETH), increased in value by over 5%, hitting an intraday high of over $1,930. Still, fears about a big influx of ETH into an exchange raise the prospect of another wave of selling pressure on the ETH/USD pair.

58.7K Ethereum Transferred To FTX In May

According to data obtained from the on-chain blockchain, an Ether address that is thought to be associated with Three Arrow Capital, a cryptocurrency hedge fund based in Singapore, sent 32,000 ETH valued at $60 million to the FTX cryptocurrency exchange on May 30. The transaction took place within the span of one hour.

The fund deposited 26,700 ETH to exactly the same ex in May, which sparked fears that it might dump its cache of Ether. This bulk transfer followed the fund’s previous deposit to the same exchange. This is largely due to the fact that, in principle, investors only move cryptocurrency to the wallets associated with their exchange accounts when they want to trade it for another asset.

However, according to on-chain statistics recorded by Glassnode in May, the total amount of Ethereum owned by exchanges followed its downward trend from the previous month.

The total amount of Ethereum (ETH) held across all cryptocurrency exchanges fell from 20.45 million to 20.38 million month-to-date (MTD), which demonstrates that investors are keeping their holdings for the foreseeable future.