Hashkey-Linked Wallet Triggers Market Shift: Ethereum's $90 Million Sell-Off
A wallet linked to Hashkey, a Hong Kong-based crypto exchange, has recently offloaded $90 million worth of Ethereum in a ten-day span.
The sale, conducted through the wallet with the address "0xD26e," involved 50,115 ETH, valued at $97.7 million, with a selling average of $2,047.
Notably, this wallet is associated with Hashkey, receiving a significant portion of the sold ETH from the exchange. The transaction took place on Binance and OKX exchanges, resulting in the withdrawal of $89.6 million USDT and $12.95 million USDC.
Market Response and ETH's Current Position
Following this substantial selling activity, Ethereum (ETH) experienced a modest 4% dip over the last week.
However, the second-largest cryptocurrency has stabilized, showing a 0.92% gain in the last day, aiming to reclaim the $2000 threshold.
The market speculation revolves around whether this significant sell-off is a preemptive move against a potential decline in ETH's value.
Analysing ETH's Trajectory and Investor Sentiment
Examining ETH's daily chart, the selling spree by wallet "0xD26e" may indicate a precautionary measure against an anticipated downturn.
The Relative Strength Index (RSI) suggests that ETH recently exited the overbought zone, potentially paving the way for further losses in the coming days.
Nevertheless, this downturn is expected to be short-lived, given the heightened investor interest surrounding the altcoin. Notably, the Ether spot ETF race in the United States has garnered considerable attention.
Ether Spot ETF Race and Investor Interest
Fidelity Investments recently joined the Ether Spot ETF competition, submitting its "Fidelity Ethereum Fund" proposal to the United States Securities and Exchange Commission (SEC).
Other asset managers like BlackRock, Hasdhdex, Grayscale, VanEck, 21Shares, and Ark are also vying for a spot in this race.
Despite the subjective and uncertain SEC approval process, the surge in Ether Spot ETF applications signals growing interest in Ethereum from traditional finance investors. The influx of such applications has historically led to positive market sentiments.
Market Response to ETF Applications
Notably, after BlackRock's filing on November 9, Ethereum experienced a nearly 13% surge, surpassing the $2,130 mark.
The market responded positively to the increased buying pressure. As of the latest update, ETH is trading at $1,950, reflecting a 0.34% gain in the last hour. However, the trading volume has decreased by 32.64%, currently valued at $7.32 billion.