Flow

Market makers’ Ether selling patterns have significantly contributed to the current crypto market decline.
Five of the top market makers have sold a total of 130,000 Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) worth $290 million at today’s price since Aug. 3, while Ether’s price crashed from $3,000 to below $2,200.
The market makers include Wintermute, which sold over 47,000 ETH, followed by Jump Trading with over 36,000 ETH, and Flow Traders, with $3,620 ETH, in third place.
GSR Markets also sold 292 ETH, while Amber Groupd sold 65 ETH, according to a research note by 0xScope shared with Cointelegraph.
While Jump Trading was the first to start selling, Wintermute sold significantly more Ether, <a href="https://x.com/ScopeProtocol/status/1820417458215510412" target="_blank" rel="noopener nofollow">noted</a>&nbsp;0xScope, in an Aug. 5 X post:
<blockquote data-ct-non-breakable="true">
 “Jump Trading started dumping ETH this past weekend, ahead of other major market makers, despite low liquidity.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/32fc3452-39b2-44b9-a847-678fbe5c59d1.jpeg" alt="Market makers sold over $300M Ether as ETH price crashed below $2,200 " title="">
 <figcaption style="text-align: center;">
 Jump Trading, Binance deposit. Source: Scopescan
 </figcaption>
</figure>
Ether is currently struggling to remain above the $2,200 psychological mark. More Ether selling from market makers and large holders could lead to lower prices and more panic selling among investors.
Related: <a href="https://cointelegraph.com/news/analysts-warn-bitcoin-downside-btc-revisit-42k">Analysts warn of further Bitcoin downside — Could BTC revisit $42K?</a>
<h2 id="ether-s-price-struggles-to-remain-above-2-200">Ether’s price struggles to remain above $2,200</h2>
Ether’s price fell over 22.3% during the 24 hours leading up to 1:10 pm UTC to trade at $2,233, according to Cointelegraph data.
Ether briefly wicked to a daily low of $2,195 around 6:30 am UTC before recovering above the $2,200 mark.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/3b393f3d-0bab-426f-b258-4ec8393d74d9.png" alt="Market makers sold over $300M Ether as ETH price crashed below $2,200 " title="">
 <figcaption style="text-align: center;">
 ETH/USD, 1-day chart. Source: Cointelegraph
 </figcaption>
</figure>
On the positive side, Ether’s price could double from the current low if it follows the same patterns from two years ago, according to pseudonymous crypto trader MarketWizard, who <a href="https://x.com/MarketWizard94/status/1820352838939132088/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 5 X post:
<blockquote data-ct-non-breakable="true">
 “Despite how scary things are [right now], ETH is at the sweet spot. Retesting the 2 year base that caused a x2 earlier this year.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/8cfe99d0-0e5c-41de-84f4-084edf57cbde.jpeg" alt="Market makers sold over $300M Ether as ETH price crashed below $2,200 " title="">
 <figcaption style="text-align: center;">
 Ether/USDT, 1-week chart. Source: MarketWizard
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-price-downside-last-2-months">Bitcoin price downside may last 2 months — Analysis</a>
<h3 id="what-about-us-spot-ether-etfs">What about US spot Ether ETFs?</h3>
The sharp decline in Ether’s price comes despite the <a href="https://cointelegraph.com/news/spot-ethereum-etfs-risks-taking-capital-away-from-bitcoin-analyst">launch of the first spot Ether</a> <a href="https://cointelegraph.com/learn/different-types-of-etfs">exchange-traded funds (ETFs)</a> in the United States, which debuted on July 23.
However, Ether&nbsp;<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter">ETF inflows</a> remain low despite the historic launch.
Since launch, the US Ether ETFs recorded over $511 million worth of cumulative net outflows, according to Farside Investors <a href="https://farside.co.uk/?p=1518" target="_blank" rel="noopener nofollow">data</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/2de91faf-249a-4c5f-a0f1-418cf72efdd6.png" alt="Market makers sold over $300M Ether as ETH price crashed below $2,200 " title="">
 <figcaption style="text-align: center;">
 Ethereum ETF Flow (USD, millions). Source: Farside Investors
 </figcaption>
</figure>
Grayscale’s Ether ETF (ETHE) accounted for the majority of the outflows, worth over $2.1 billion, while the other ETF issuers have all logged net positive inflows.
While Ether ETFs mark a significant regulatory development, ETH ETFs&nbsp;<a href="https://cointelegraph.com/news/ether-etfs-sidekick-bitcoin-etfs-bloomberg-analyst">may only be a “sidekick”</a>&nbsp;to Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) ETFs in terms of inflows, Eric Balchunas, senior ETF analyst at Bloomberg, told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “Bitcoin is like enough crypto hot sauce. You’re like, ‘You know, I’m good.’ These things move together anyway. Ethereum is harder to explain, but I’m just seeing it being a sidekick [to Bitcoin].”
</blockquote>
Magazine: <a href="https://cointelegraph.com/magazine/bitfinex-hacker-bitcoin-2024-senator-lummis-bitcoin-strategic-reserve-bill-cointelegraph-magazine/">Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28–Aug. 3</a>

Market makers sold over $300M Ether as ETH price crashed below $2,200

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