China Reportedly Preparing to Sell $1.3B Worth of Ether (ETH) Seized From PlusToken Ponzi Scheme

The wallet holding these tokens has moved for the first time since 2021, indicating that the holders of the leading digital asset might soon witness an increased selling pressure.

China is reportedly preparing to sell $1.3 billion worth of Ether (ETH) seized from the PlusToken Ponzi scheme.

Crypto researcher ‘FreeSamourai’ reported on Friday that approximately 7,000 ETH of the total 542,000 ETH seized from PlusToken have been moved to various digital asset trading platforms. This suggests that the relevant authorities are preparing to sell the remaining tokens.

According to FreeSamourai’s analysis, this could lead to ETH dropping below the $2,400 price level.

Remnants of ETH seized from the multibillion dollar PlusToken scheme awoke on-chain for the first time since '21.

Over the last 24h about 7k ETH of the remaining 542k ETH ($1.3b) was sent to exchanges indicating intent to begin selling the remaining tokens.

Could see ETH drop below the $2,400 price level.

CoinMarketCap data shows that ETH is currently trading at $2,403.45, a 50.8% decrease from its all-time high of $4,891 in 2021. Trading volume has increased by 4.10% to $14.7 billion, and the market capitalization is at $289 billion.

As previously reported by CoinEdition, remnants of the Ether seized by Chinese authorities from the PlusToken Ponzi scheme began to move on-chain for the first time since 2021.

According to on-chain data, a total of 7,150 ETH were moved from the wallet that has been holding the seized crypto. Out of this, 7,000 ETH were sent to an unknown wallet, while the remaining 150 ETH were sent to a Deribit hot wallet.

The Chinese government has not yet carried out a major sell-off, but recent weeks have shown that the crypto market can often absorb significant FUD. Similar fears arose when the German government began selling its Bitcoin (BTC) holdings.

Will ETH Reclaim $2,500?

A TradingView chart shows that ETH’s price action is currently in the lower Bollinger Band, indicating that bears are in control. However, the chances of a breakout are increasing, especially with high trading volumes.

A glance at the Relative Strength Index (RSI) reveals that it is currently at 44.47, indicating relatively high selling pressure. But the upward gradient of the RSI line suggests that higher prices are possible in the short term.

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