Jump Trading Offloads More Ethereum as ETH Price Drops 3.5% Daily

Crypto algorithmic trading platform and market maker Jump Trading has resumed its Ether (ETH) sales, offloading more than 17,000 ETH worth more than $46.44 million on Wednesday.

An X post by blockchain analytics firm Lookonchain revealed that Jump Trading claimed the assets of the Lido liquid stake protocol and put them up for sale in lots of 2,000 ETH.

Jump Trading starts selling ETH

Lookonchain said that Jump Trading had 21,394 Wrapped Staked ETH (wstETH) worth approximately $68.58 million, suggesting that the company may execute more ETH sales in the coming days.

Jump Trading coin movements have raised concerns about an incoming market dump among market participants. The crypto trading platform had been on an ETH selling streak since July, pausing for a few days in early August to resume yesterday.

On August 5, Lookonchain reported that Jump Trading was selling 120,695 wstETH worth $481 million and had sold 83,000 wstETH valued at $377 million since July 24. Between July 24 and August 5, ETH lost more than 33% of its value, falling from $3,400 to $2,400. .

The blockchain analyst clarified at the time that the 120,695 wstETH Jump Trading sold had been recovered from attackers who exploited the Wormhole protocol, and the company had about 37,604 wstETH worth $104 million to sell.

ETH to the south

Shortly after the moves were made, they had little to no impact on ETH price action. However, the picture changed later as the crypto-asset saw a quick decline from $2,775 to $2,645 and settled around the level. With the market currently trading sideways, it remains to be seen how much ETH will absorb the potential sell-off in the coming days and if more pain is just around the corner.

Interestingly, Jump’s activities have also sparked talk of manipulation among market participants. Some members of the community think that the fund movements could be for the provision of liquidity in exchanges, not sales, as Lookonchain said.

Meanwhile, Jump Trading has been under investigation by US authorities since mid-June. Sources familiar with the matter said the Commodity Futures Trading Commission (CFTC) was investigating the market maker for its involvement in crypto and related trading and investment activities. The investigation was not considered evidence of wrongdoing, and the CFTC has not yet announced any charges or complaints against the company.

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