Ether Slides 20% as Trading Firm Moves $46M in ETH

A wallet supposedly associated with Jump Trading moved 17,576 ETH to centralized exchanges, according to Spot On Chain.

Ether price crashed 20% as a large crypto trading firm moved a significant amount of ETH to centralized exchanges, preparing for a potential liquidation over the weekend.

The second-largest cryptocurrency by market value dropped to a seven-month low of under $2,100 during Monday's Asian hours, a steep fall from the previous day, CoinDesk data showed.

A wallet, identified as belonging to Chicago-based trading giant Jump Trading by onchain sleuth Spot On Chain, moved 17,576 ETH – over $46 million at current prices – to centralized exchanges on Monday.

In June, reports emerged that the U.S. Commodity Futures Trading Commission (CFTC) was investigating Jump Trading over its role in the Terra (LUNA) ecosystem collapse.

The wallet has transferred nearly 90,000 ETH to exchanges since July 25 and still held 37,600 wrapped staked ETH (wstETH) and 11,500 staked ETH (stETH) at press time. wstETH is the decentralized finance (DeFi)-compatible version of Lido's stETH.

"The reason for the crazy crypto sell-off seems to be Jump Trading, who are either getting margin called in the traditional markets and need liquidity over the weekend, or they are exiting the crypto business due to regulatory reasons (Terra Luna related),” Dr. Julian Hosp, CEO and co-Founder of decentralized platform Cake Group, said on X.

The supposed liquidation over Sunday and early Monday has drawn the crypto community's ire. The said time frame is generally characterized by weak liquidity or the ability of the market to absorb large orders at stable prices.

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