Ethereum Price Drops 20% Amid Major ETH Transfers by Jump Trading

Ethereum Price Plummets Amid Major Trading Firm Movements

Ethereum’s native cryptocurrency, Ether (ETH), has experienced a significant decline, with its price plummeting as a well-known crypto trading firm has transferred substantial amounts of ETH to centralized exchanges, signaling potential liquidation activity. As reported by CoinDesk, the second-largest cryptocurrency by market capitalization saw a staggering 20% drop within a 24-hour period, reaching a seven-month low of under $2,100 during the early hours of Monday in Asia.

During this tumultuous period, a wallet associated with the Chicago-based trading powerhouse Jump Trading moved an impressive 17,576 ETH, valued at over $46 million, to centralized exchanges. This wallet has been particularly active, having transferred nearly 90,000 ETH to exchanges since July 25, while retaining a balance of 37,600 wstETH and 11,500 stETH as of the latest updates. The wstETH represents the DeFi-compatible variant of Lido’s staked ether (stETH).

Dr. Julian Hosp, the CEO and co-founder of the decentralized platform Cake Group, weighed in on the situation via a post on X, stating, “The reason for the drastic crypto sell-off appears to be linked to Jump Trading, which may either be facing margin calls in traditional markets and requires liquidity over the weekend, or they could be exiting the crypto space due to impending regulatory challenges, reminiscent of the Terra Luna incident.”

This unexpected wave of liquidation activity over the weekend has sparked considerable frustration within the crypto community. The timeframe during which these transactions occurred is typically characterized by lower liquidity, meaning the market’s capacity to absorb large orders without affecting prices significantly is limited.