The recent decline in Ethereum’s price has sparked speculation about various contributing factors, with one prominent theory suggesting that China might be dumping the recovered Plustoken ETH.
According to Coingeckko, The price of Ethereum has dropped by 2% in the last 24 hours and is currently trading below $2400.
Plustoken was a fraudulent cryptocurrency Ponzi scheme that operated in China from 2018 to 2019. When it busted out, Chinese authorities seized about 194,000 BTC and 830,000 ETH from the leaders of the machine By 2020, most bitcoins were undercut, however Ethereum now for so long as that remained largely intact.
According to OTC Research’s on-chain data analysis, the Chinese government has begun selling the remaining 542k Ether seized in the PlusToken scam, which is valued at more than $1.3 billion. In the previous 24 hours, the Chinese government transferred 15.7k Ether to an unknown address, leading analysts to speculate on a possible sell off.
Furthermore, the Chinese government then sent 7k Ether to addresses associated with crypto exchanges recently.
Although the Ethereum market can absorb the recent selling pressure, the short-term outlook will remain bearish.
Also Read: China Rumored to Unban Bitcoin: How Likely Is It?
