Ethereum (ETH) has been experiencing a significant downtrend in recent days. As a result, the Chinese government began selling the 7,000 ETH it seized as part of the PlusToken scam. This naturally pushed the Ethereum price below $2,400 and created unrest in the markets. Moreover, the possibility of a larger sales wave makes investors very worried.
China’s Giant ETH Sales Plans
As Kriptokoin.com reported, the PlusToken fraud was a major cryptocurrency fraud that victimized millions of people. In this context, the Chinese government seized a large amount of ETH. Recently, the reactivation of Chinese government wallets with the sale of 7,000 ETH has seriously increased the concerns that the remaining 542,000 ETH may also be on sale. Therefore, this brings with it the risk of Ethereum price falling below $2,000.
These sales started when wallets that had been dormant since 2019 became active again. Additionally, during this process, 542,000 ETH was distributed to different addresses, making it difficult to track. The impact of this massive sell-off on the Ethereum market is being watched closely by investors and is causing concern.
Selling Pressure on the Market Is Increasing
The Chinese government’s large-scale ETH sales are putting serious pressure on the market. For example, in a similar situation before, when the German government sold Bitcoin, the price of Bitcoin experienced a significant drop. Similarly, possible ETH sales by China may have the same impact on the Ethereum market. Currently, Ethereum price is trading at $2,400. However, if this selling pressure continues, it is quite possible that the price will drop further.
In recent weeks, sales by large ETH holders in particular have also greatly weakened investor confidence. As a result, this situation causes fluctuations in the Ethereum price in the short term and investors become cautious. As selling pressure increases day by day, the market becomes more uncertain.
More Drop Expectations for ETH
Ethereum price is trading at critical levels according to technical analysis. Moreover, a decline below the $2,300 level would cause the price to decline towards $1,800 levels. Currently, technical analysts are closely monitoring Ethereum’s price movements. Any major selling wave will lead to a sudden crash in Ethereum price.
According to analysts’ predictions, if the Chinese government sells 542,000 ETH, the Ethereum price will face serious selling pressure. In this case, it creates an overall downward trend in the cryptocurrency market. In addition, these developments, which will shake the confidence of investors, will increase the volatility in the market.
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