Ether (ETH) Price Slumps 22% as Market Makers Dump 130,000 ETH Ahead of Spot ETF Launch

The recent steep decline in Ether prices has been heavily influenced by massive selling activity from major market makers.

Major market makers have been at the heart of the recent steep decline in Ether prices, with five of the top market makers selling a combined total of 130,000 ETH, valued at nearly $290 million at current prices.

This selling activity has pushed Ether’s value to plummet from $3,000 to below $2,200.

According to research by 0xScope, Wintermute led the sell-off with over 47,000 ETH sold, followed by Jump Trading with over 36,000 ETH, and Flow Traders with 3,620 ETH. GSR Markets and Amber Group also participated, selling 292 ETH and 65 ETH respectively.

Notably, Jump Trading kicked off the sell-off, but it was Wintermute that sold the most substantial amount of Ether.

This selling pressure has caused Ether to struggle to maintain the $2,200 psychological mark. Ether’s price fell by 22.3% over 24 hours, hitting a low of $2,195 before recovering slightly to trade at $2,233.

This decline in Ether's price comes as the first spot Ether exchange-traded funds (ETFs) launched in the United States on July 23. Despite this historic launch, Ether ETF inflows have been less than stellar, recording over $511 million in cumulative net outflows since their debut.

Grayscale’s Ether ETF (ETHE) accounted for the majority of these outflows, with over $2.1 billion, while other ETF issuers reported net positive inflows.

Eric Balchunas, senior ETF analyst at Bloomberg, suggested that while Ether ETFs are a significant regulatory development, they may only serve as a “sidekick” to Bitcoin ETFs in terms of inflows.

However, some analysts are still optimistic, with pseudonymous crypto trader MarketWizard pointing out that Ether’s price could double from the current low if it follows similar patterns from two years ago.

“Despite how scary things are [right now], ETH is at the sweet spot. Retesting the 2 year base that caused a x2 earlier this year,” wrote MarketWizard in an X post.

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