The onchain analytics firm transferred the 300 ETH tokens from a wallet designated as “Noman Seleem Seized Funds.”
On August 5, a wallet address ending in “d46” was transferred 300 Ether, estimated to be worth $699,000, from a wallet believed to be under the custody of the United States government, according to Arkham Intelligence.
Additionally, the onchain analytics firm asserted that the funds in the wallet, which currently displays a balance of $0, were confiscated by the United States government.
Price fluctuations of ETH Tokens
Following the highly anticipated introduction of Ethereum exchange-traded funds (ETFs) in the United States, the United States government is reported to have transferred ETH. This transfer coincides with days of disappointing price action.
According to Crypto Lion, an independent analyst, the primary reason for the ETH tokens difficult price action after the ETF’s debut was a shortage of demand for smart contract assets on exchanges.
The absence of demand is accompanied by a substantial decline in financial markets due to the Bank of Japan’s decision to raise interest rates, further devaluing Ethereum.
Ether was subjected to substantial selling pressure, primarily caused by a small number of market makers who sold approximately 130,000 ETH, valued at $290 million at the time of writing, onto the market. This resulted in Ether tumbling to a low of approximately $2,100 on August 5, and the digital asset continues to trade at a significant discount to its 200-day exponential moving average.
Outflows from Ethereum ETF
In the CoinShares weekly inflows report dated August 5, digital asset investment vehicles experienced their first capital outflow in four weeks.
The total outflow figure for Ethereum investment funds and products for the week was $146 million, bringing the total outflow figure since the introduction of the Ethereum ETF in the United States to $430 million.
CoinShares observed that the data was affected by $603 million in outflows from Grayscale’s Ethereum Trust, established in 2017, and has experienced substantial inflows since introducing Ethereum ETFs in late July.
The theory that the current market downturn is predominantly driven by macroeconomic factors and geopolitical tensions was reaffirmed by CoinShares analyst James Butterfill. This negative sentiment among investors may conceivably indicate a longer recovery period for ETH than was initially anticipated.
