A US government wallet, labeled ‘Noman Seleem Seized Funds,’  transferred 300 ETH on August 5, according to data provided by on-chain analytics firm Arkham Intelligence. The funds were sent to a wallet with the address ‘0x38cEd5767F1c16DeeA54c5175e0f23a5Dab1aD46.’

With that transfer, believed to be the government selling the seized assets, the wallet holds 0 ETH. The wallet’s holding was worth about $699,000 at the time of the transfer.

This large volume of ETH may find itself on an exchange or multiple when massive amounts are being liquidated and the demand for the asset is relatively low. ETH has performed below expectations since the launch of US-based spot ETH ETFs. Many were expecting its price to spike well over the $3,000 mark, but the asset has failed to do so.

That is because of steady selling action maintained by multiple entities. Over the weekend, Jump Trading’s crypto division, Jump Crypto, offloaded hundreds of millions worth of ETH to exchanges. It has thousands more ETH staked, which are expected to be sold as the firm might exit the crypto business due to ongoing regulatory investigations.

Furthermore, multiple market makers dumped ETH holdings during the same time, also amounting to hundreds of millions, adding tremendous selling pressure on the asset. ETH fell to lows of $2,100 during early Monday trading hours.

Of course, macroeconomic factors are also playing a massive role in keeping ETH’s price down. Japan’s Nikkei observed the worst trading day since 1987 due to the Bank of Japan increasing interest rates last week, an unexpected event. The Japanese market crashing sent shockwaves worldwide, causing red visuals in stock markets in numerous regions. That obviously struck the crypto market, causing many assets, including ETH, to plummet.

ETH is now recovering, exchanging hands at over $2,500 at the time of writing.

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