Chinese authorities transferred 7,000 ETH to exchanges. These tokens are part of the confiscated 542,000 ETH, which might influence the market.
Movements of Ethereum by Chinese Authorities
Chinese authorities have recently transferred 7,000 ETH to various exchanges. These tokens are part of a larger stash of 542,000 ETH, confiscated in 2018 from a cryptocurrency Ponzi scheme.
Current Market Position of Ethereum
At the time of reporting, Ethereum was trading at $2,401, following a nearly 2% price drop within 24 hours. This aligns with a general bearish sentiment in the wider cryptocurrency market, with the Fear and Greed Index hitting a seven-day low of 39.
Potential Supply Overhang Issue
According to on-chain researcher ErgoBTC, Ethereum could face an unexpected supply overhang due to the recent move of 7,000 ETH to exchanges. Such actions might increase selling pressure on Ethereum in the upcoming weeks.
The movements of confiscated Ethereum impact the market by creating price pressure and increasing trading volatility.
