NEW YORK, August 5, 2024 - Ether (ETH) has experienced a sharp decline, dropping 20% in just 24 hours and reaching a seven-month low of under $2,100 during Monday's Asian trading hours, according to CoinDesk data. The sudden drop is linked to large transfers of ETH to centralized exchanges by a prominent crypto trading firm.

Chicago-based Jump Trading, identified by on-chain analyst Spot On Chain, transferred 17,576 ETH, valued at over $46 million, to centralized exchanges within the past 24 hours. Since July 25, the firm has moved nearly 90,000 ETH to exchanges, while still holding 37,600 wstETH and 11,500 stETH at the time of reporting. These tokens represent Lido's staked ether (stETH) and its DeFi-compatible counterpart.

The significant sell-off has fueled speculation that Jump Trading may be facing a margin call in traditional markets, requiring liquidity over the weekend, or possibly exiting the crypto space due to regulatory pressures, including those related to the Terra Luna collapse. Dr. Julian Hosp, CEO and co-founder of decentralized platform Cake Group, suggested on X that these could be the reasons behind the firm's actions.

The liquidation occurred over Sunday and early Monday, a period typically marked by low liquidity, exacerbating the market's inability to absorb large orders without significant price disruption. This has led to frustration within the crypto community, as the sell-off has contributed to a broader market downturn.