Token

Reserve

Merge

Over $350 million worth of Ether tokens are set to be unlocked in the next nine hours, threatening to drive the ETH price below a critical support level.
A total of 145,380 Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) is set for withdrawal at 8:00 pm UTC, threatening an additional $353 million worth of selling pressure for the world’s second-largest cryptocurrency, <a href="https://token.unlocks.app/ethereum-shanghai" target="_blank" rel="noopener nofollow">according</a> to TokenUnlocks data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/22769b5d-2104-4bdb-a2bf-38ee2721d765.png" alt="$350M Ether set for withdrawal in next 9 hours — Can ETH price remain above $2.2K?" title="">
 <figcaption style="text-align: center;">
 Ether withdrawals. Source: TokenUnlocks
 </figcaption>
</figure>
While Ether withdrawals don’t necessarily translate into selling, a significant part of these tokens could still end up being sold on the open market.
While the $350 million unlock is significant in size, similar withdrawals are routine since <a href="https://cointelegraph.com/learn/ethereum-upgrades-a-beginners-guide-to-eth-2-0">Ethereum’s Merge</a> and <a href="https://cointelegraph.com/innovation-circle/the-ethereum-shanghai-upgrade-everything-you-need-to-know">Shanghai upgrades</a>, according to Bitfinex Analysts, who told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “$350M worth of Ether is not a very significant amount in context of the fact that it’s a $300 billion asset and the daily volume on CEXes amounts to $24 billion. We do not think this particular piece of news is significant enough to cause a market collapse or a 10% decline in ETH, as mentioned.”
</blockquote>
Ether price has been in a downtrend for three consecutive weeks, dipping to an over five-month low below $2,200 on Aug. 5 after the three-day <a href="https://cointelegraph.com/news/top-50-cryptos-lose-2024-gains-510b-selloff">$510 billion crypto sell-off</a>. Losing this psychological support line could introduce more panic selling.
Related: <a href="https://cointelegraph.com/news/jump-trading-sells-29m-ether-bottom-near">Jump Trading sells another $29M Ether with $63M left to go — Is the bottom near?</a>
<h2 data-ct-non-breakable="true" id="validators-could-introduce-another-877-million-in-ether-selling-pressure">Validators could introduce another $877 million in Ether selling pressure</h2>
Ethereum validators are preparing to cash in their tokens and staking rewards, potentially looking to sell.
There is an additional 360,000 Ether pending for withdrawals by over 10,000 validators. This could introduce an additional $877 million worth of selling pressure for Ether.
While the crypto market sell-off that led to Ether’s decline was catalyzed by an array of macroeconomic factors, industry-specific developments also played an important role in the price crash.
The market crash could be directly linked to&nbsp;<a href="https://cointelegraph.com/news/crypto-market-crash-jump-trading-selling-qcp">aggressive selling by Jump Trading</a>, according to QCP Group, one of Singapore’s first digital asset trading groups. QCO Group wrote in an Aug. 5 report:
<blockquote data-ct-non-breakable="true">
 “The immediate trigger in crypto seems to have been aggressive ETH selling from Jump Trading and Paradigm VC. The move was probably exacerbated by market makers scrambling to cut short gamma as front-end ETH volumes spiked more than 30% to 120%!”
</blockquote>
Yet, Jump Trading wasn’t the only one selling Ether. Five of the top <a href="https://cointelegraph.com/news/market-makers-sold-300m-ether-august-2024">market makers have sold</a> a total of 130,000 Ether worth over $290 million, while Ether’s price crashed from $3,000 to below $2,200.
Related: <a href="https://cointelegraph.com/news/bitcoin-fall-50k-magnificent-7-stocks-500-billion-loss">Bitcoin could fall below $50K if Magnificent 7 stocks stage another $500 billion loss</a>
<h3 data-ct-non-breakable="true" id="is-the-ether-price-bottom-in">Is the Ether price bottom in?</h3>
But, the local bottom may be in for the Ether price, according to crypto analysts.
ETH fractals also point to a potential price breakout in the near term, according to pseudonymous analyst Crypto Bullet, who <a href="https://x.com/CryptoBullet1/status/1820854465953698243/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 6 X post:
<blockquote data-ct-non-breakable="true">
 “Ethereum cycle comparison: $ETH 2017-2021 vs #ETH 2021-2024. Looks like we’re exactly where we should be.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/f6d7ca94-ca22-498b-beac-707b5148f2b0.jpeg" alt="$350M Ether set for withdrawal in next 9 hours — Can ETH price remain above $2.2K?" title="">
 <figcaption style="text-align: center;">
 Ether fractals, 2021–2024. Source: CryptoBullet
 </figcaption>
</figure>
Fractal patterns are used by technical traders to identify key support and resistance levels and potential trend reversals based on historical data.
Other analysts are also expecting a local price bottom, including popular analyst Poseidon, who <a href="https://x.com/CryptoPoseidonn/status/1821241012687138927/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 7 X post:
<blockquote data-ct-non-breakable="true">
 “The market will bottom in the green and will offer several chances to buy $ETH over the next 2 months.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/c00c2944-a1b5-4de8-b409-ea81a992c452.jpeg" alt="$350M Ether set for withdrawal in next 9 hours — Can ETH price remain above $2.2K?" title="">
 <figcaption style="text-align: center;">
 Ether/USDT, 3-day chart, Macro Bottom. Source: Poseidon
 </figcaption>
</figure>
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>

$350M Ether set for withdrawal in next 9 hours — Can ETH price remain above $2.2K?

Table of Contents

Cointelegraph

Other articles published on Aug 8, 2024

Solana’s RSI Hints at Major Breakout—Here’s Why You Shouldn’t Miss Out!

The Crypto Market Is Collapsing by 25%! What to Do Now?

Analyst Foresees Bitcoin’s Upcoming Surge

BitGo Receives License in Singapore to Offer Crypto Services

2 Cryptos To Buy And Hold During The 2024 Bull Run For High Returns

Brazil Approves Solana-Based ETF

Join our free newsletter for daily crypto updates!