ethereum price continued its recovery even as Jump Trading resumed selling its tokens this week.
ethereum (eth) rose to a high of $2,753 on Wednesday, its highest point since Aug. 4 and 30% above its lowest point this month.
Jump Trading is selling Ether
This rally coincided with that of other coins. bitcoin (btc), the standard-bearer in the cryptocurrency industry, rose to $61,000, while the combined market capitalization of all coins rose to $2.15 trillion.
ethereum rallied even after Jump Trading resumed selling its Ether holdings. According to LookOnChain, the firm claimed 17,049 Ether tokens worth $46.4 million from Lido and sold them.
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Jump Trading has been selling its tokens for the past few weeks, which partly explains why ethereum fell during the cryptocurrency Black Monday. It was worse than bitcoin and other currencies.
Data from Arkham Shows that the company still holds 24,919 Ether tokens, 28,735 stETH tokens, and 675 wETH coins. In total, Jump Trading holds assets worth over $423 million.
A likely reason for the ethereum price rally is that investors have started flocking to ethereum spot ETFs. Data from SoSoValue showed that ethereum spot ETFs saw net inflows of over $24.3 million.
Most of these inflows went into BlackRock’s ethereum ETF, which recorded $49.1 million in assets, bringing total assets under management to $843 million. If this trend continues, the fund is likely to hit the $1 billion mark in the coming months.
Fidelity’s FETH fund also had $5.4 million in assets, while Invesco’s QETH had $813,000. Other ETFs from firms including Bitwise, VanEck and Franklin Templeton saw no inflows on Tuesday, while Grayscale’s ethereum Trust saw more than $31 million in outflows. Its mini-trust has amassed more than $981 million in assets, thanks to its lower fees.
ethereum price death cross is a risk
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Still, ethereum is at risk of further declines as it has formed a death cross pattern on the daily chart. The 50-day and 200-day simple moving averages crossed over each other on August 7. In most cases, this pattern leads to further declines.
Therefore, ethereum’s upside will be confirmed if the coin turns the important resistance of $2,833 into a support level. This is a crucial level as it was its lowest level in April, May, and July, and the neckline of the sloping triple top pattern.
On the other hand, a drop below last week's low of $2,114 would signal further downside, indicating that the bears have prevailed.
