Metalpha Dumps $77.55M in Ethereum as Market Faces Sell Pressure from Major Holders

• Metalpha has sold 37.5% of its Ethereum holdings, liquidating $77.55M ETH in four days, potentially signaling more sales this week.
• Vitalik Buterin-linked wallets have reduced Ethereum holdings, adding to market sell pressure amid a decline in Ethereum revenue.
• Ethereum faces heightened scrutiny as major players like Metalpha and Buterin continue to offload significant ETH holdings.

Metalpha, a Hong Kong-based asset management firm linked to Bitmain, has made another large Ethereum deposit to Binance. Today, the company deposited an additional 10,000 Ethereum, worth $23.45 million. This adds to the total of 33,589 ETH that Metalpha has transferred to Binance over the past four days, amounting to roughly $77.55 million.

On-chain analytics platform LookonChain reported these figures, highlighting a notable trend in Metalpha’s activity. Despite the considerable sales, Metalpha still holds 51,300 ETH, valued at around $120 million.

Metalpha’s Selling Spree in the Last Four Days

Metalpha’s rapid liquidation of its Ethereum holdings marks a notable moment in the crypto market. The firm has sold 37.5% of its total ETH holdings in the past four days. If this pace continues, Metalpha could potentially liquidate its entire Ethereum position by the end of the week. 

Large-scale transactions like these often contribute to market fluctuations, especially when the amounts sold are substantial. The firm’s ongoing sales are closely monitored by market analysts due to their potential impact on Ethereum’s short-term price.

Vitalik Buterin’s Wallet Activity and Market Sentiment

Interestingly, Metalpha’s Ethereum sales coincide with other notable holders reducing their ETH holdings. Both the Ethereum Foundation and Ethereum co-founder Vitalik Buterin have recently decreased their positions. A multi-signature wallet linked to Buterin sold 760 ETH in recent transactions, which followed transfers of 3,800 ETH from related wallets. 

These sales have added to the broader market sentiment, which has been affected by a decline in Ethereum revenue. Market analysts have observed the resulting pressure on Ethereum prices, though the long-term implications of these moves remain uncertain.

Ethereum Market Under Increased Scrutiny

As Metalpha and other major players offload their Ethereum holdings, the market faces heightened scrutiny. The firm’s rapid liquidation comes at a time of slowing growth in the Ethereum ecosystem. 

Although Metalpha still holds a large portion of its Ethereum assets, their continued sales could signal further changes in the market. These developments, combined with sales from Buterin’s wallet, adds on the increasing sell pressure on Ethereum.