Is the price of Ethereum about to drop as these two institutions sell ETH stakes?

On-chain data provided by Lookonchain claimed that two prominent institutions have sent millions of ETH to exchanges, which could suggest trouble for the second largest cryptocurrency.

Ethereum is currently trading near $2,700 after gaining 5% over the past week.

2 institutions sell $ETH!

A portfolio related to #Cumberland deposited 11,800 $ETH($31.88 million) a #Coinbase 7 hours ago#ParaFiCapital withdrew 5,134 $ETH($13.83 million) from #Lido and deposited it #CoinbasePrime 6 hours ago

Address:… pic.twitter.com/zuOe68IIuJ

— Lookonchain (@lookonchain) September 28, 2024

As the tweet above says, the two institutions in question are Cumberland and ParaFiCapital. The former deposited 11,800 ETH (worth nearly $32 million) into Coinbase, while the latter withdrew 5,134 ETH (nearly $14 million) from Lido and sent the funds to Coinbase Prime.

Both transfers to the largest US-based exchange occurred within a few hours earlier today.

Recall that the price of ETH fell sharply in early August under similar circumstances. Then another prominent ETH investor, Jump Trading, sold roughly $500 million of the asset, the price of which fell by double digits within days.

A week later, the company sold a more modest portion of 17,000 ETH (at the time $46 million) and the price of Ethereum fell again, this time around 3-4%.

Consequently, the question arises whether the Cumberland and ParaFiCapital deposits will lead to similar price corrections for ETH, although they are much smaller than Jump Trading’s first ones.

ETH has been on the move lately, along with the broader market, having risen 5% on the week and trading near $2,700 for the first time since the aforementioned correction.

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