Prominent crypto market maker Jump Trading has initiated another round of Ethereum (ETH) sell-offs, raising concerns about a potential correction in ETH prices. This development comes on the heels of a significant market event last week when a similar selloff led to a more than 20% crash in ETH prices.
On August 14, Lookonchain reported that Jump Trading claimed 17,049 ETH, valued at approximately $46.44 million, from the liquid staking protocol Lido. The firm then transferred these assets to a wallet address (“0xf58”) commonly associated with sales to crypto exchanges. This action follows the firm’s previous large-scale liquidation efforts.
Jump Trading still holds a substantial Ethereum portfolio, including 21,394 wstETH (wrapped staked ETH) valued at $68.58 million. Additionally, it has recently redeemed 21,394 wstETH for 25,156 stETH, although it has yet to immediately withdraw these assets from Lido, as it has in the past.
Despite the recent selloff, Jump Trading’s Ethereum holdings remain significant, with nearly $148 million in assets, including 24,993 ETH and 29,093 stETH staked with Lido Finance.
The timing of these selloffs is critical, especially following the departure of Kanav Kariya, the former president of Jump Crypto, after nearly three years in the role. This leadership change coincided with an ongoing investigation by the U.S. Commodity Futures Trading Commission (CFTC) into Jump Crypto, which may have influenced the firm’s recent activities.
Last week’s $300 million ETH liquidation by Jump Trading resulted in a sharp 20% decline in ETH prices. With the firm now moving larger amounts of ETH compared to previous selloffs, there is growing concern that the market could witness another significant price drop.
Currently, Ethereum is trading at around $2,725, down more than 3% in the past 24 hours, with a 24-hour low and high of $2,613 and $2,750, respectively. Trading volume has decreased by 28%, indicating a potential decline in trader interest. Additionally, the derivatives market is showing signs of stress, with total ETH futures open interest falling more than 1% on certain exchanges in the last four hours, despite a 5% increase in the last 24 hours, according to Coinglass data.
If Jump Trading continues to liquidate its Ethereum holdings, the market could experience further downward pressure. The recent increase in ETH futures open interest suggests that traders are positioning for potential volatility, but the decline in trading volume points to growing uncertainty. Furthermore, reports suggest that Jump Trading may also be liquidating other assets, such as Threshold (T), following its recent Ethereum dump, which could exacerbate market instability.
Investors should closely monitor Jump Trading’s activities, as continued selloffs could lead to further corrections in the Ethereum market and potentially impact the broader cryptocurrency ecosystem.
