Ethereum’s Value Faces Challenges Following Metalpha’s $90 Million ETH Transaction

Currently, Ethereum (ETH) is trading at $2,356, with a 0.72% rise in price today. Nevertheless, Thursday might witness a price decline as on-chain data indicates that Metalpha has sold 6,999 ETH valued at $16 million.

Impact of Metalpha’s ETH Sales on Ethereum Price Surge

Metalpha, a crypto management firm based in Hong Kong, has recently sold close to 7,000 ETH totaling $16 million. This marks the third consecutive day of ETH sales by Metalpha.

 

As a result of this sale, Metalpha’s ETH holdings have dwindled to 1.9K ETH valued at $4.50 million, as per analytics from Arkham.

Metalpha Portfolio

Highlighted below are Metalpha’s significant sales:

  1. September 10 – 10K ETH, $23 million
  2. September 11 – 22K ETH, $51 million
  3. September 12 – 6K ETH, $16 million

Altogether, the asset manager from Hong Kong has disposed of 38K ETH worth $90 million over three days.

No Respite for ETH Price Movement

ETH’s price has faced setbacks in 2024 and has lagged compared to other top altcoins. While BTC has shown a year-to-date surge of 31.25%, ETH stands at -0.04%, indicating waning investor enthusiasm towards Ether despite the introduction of spot Ethereum ETFs.

ETH vs. BTC YTD Performance

Furthermore, Ethereum continues to underperform even when Bitcoin’s price rallied by 10% since September 6. ETH is currently hovering around $2,333 and has failed to breach the crucial resistance level at $2,500. The lack of buying pressure and the lower limit of $2,417 on the yearly Volume Weight Average Price (VWAP) present hurdles to an upward price movement.

ETH/USDT 1-day chart

Forecasts for Ethereum’s price imply that ETH might dip and stabilize around the $2,525 support level. If Bitcoin’s trajectory improves and aims for a $60,000 rally, Ether’s price could follow suit. Conversely, a BTC downturn could prompt Ethereum to drop to $2,000.

The original article is available on CoinGape.