The Chinese government recorded a decrease in the price of ETH with the sale of 542k Ethereum
Following Bitcoin's (BTC) drop to $61k, which affected similar movements in most altcoins, Ethereum's (ETH) price fell 2 percent over the past 24 hours to trade at $2,394 mid-day in London on Thursday, October 10. . The large-cap altcoin, which has a fully minted value of around $288 billion and an average daily trading volume of around $14.2 billion, has been creating a reversal over the past three months.
Ethereum faces fundamental obstacles
The Ethereum market is expected to take more selling pressure from the Chinese government as it prepares to sell the remaining 542k Ether seized from the Platoken Ponzi scam. According to chain data analysis, the Chinese government transferred 15.7k Ether to a separate wallet address.
Additionally, the Chinese government has put a total of 7k ET coins into crypto exchanges, presumably for sale. As a result, experts believe that the Chinese government is likely to sell more Ether coins in the near future.
The Ethereum network has experienced strong selling pressure due to low demand from institutional investors.
In addition to the popular sale by the Ethereum Foundation, the US Spot Ether ETF has recorded over $561 million in net cash flow since its official approval.
Medium term expectations
From a technical perspective, Ethereum price is forming a potential symmetrical triangle pattern, which usually leads to a bullish reversal. From a different perspective, Ether price is forming a potential inverted head and shoulders (H&S) in the daily time frame, coupled with the relative strength index.
With more than 28 percent of Ether's distributed supply already locked up to secure the network, Ethereum's price is well positioned for a bullish recovery before the end of this year.
