A wallet potentially connected to SharpLink Gaming transferred 10,975 Ethereum tokens valued at approximately $33.5 million to a Galaxy Digital over-the-counter trading desk over two days, according to blockchain analytics firm Lookonchain. The wallet subsequently received 10 million USDC stablecoins from the same OTC address, sparking questions about whether the gaming company is reducing its Ethereum holdings as the cryptocurrency tests critical support near $3,000.
What to Know:
- A wallet possibly linked to SharpLink Gaming moved 10,975 ETH worth roughly $33.5 million to Galaxy Digital's OTC desk and received 10 million USDC in return
- Ethereum is trading just above the $3,000 support level after failing to reclaim $4,000 in late October, with all major moving averages trending downward
- Large OTC transactions typically indicate institutional repositioning rather than panic selling, though the transaction's true nature remains unconfirmed
Institutional Activity Raises Questions About Strategic Positioning
Lookonchain data shows the wallet, identified as address 0x70Dd, completed the transfers during a period of heightened volatility across cryptocurrency markets. The transaction pattern resembles a structured OTC sale, where large holders liquidate positions without affecting public exchange order books. However, no direct confirmation exists that SharpLink Gaming controls the wallet or authorized the transfers.
The timing coincides with Ethereum's struggle to maintain positions above $3,000, a price level that has served as a key demand zone throughout the year.
OTC transactions of this size often signal strategic treasury management or portfolio rebalancing by institutional holders. Such moves can occur for various reasons including profit-taking, diversification requirements, or operational capital needs.
Market analysts note that large OTC flows don't necessarily indicate bearish sentiment, as institutions frequently use these channels for routine treasury operations. The return of 10 million USDC to the wallet suggests a deliberate exchange rather than a complete exit from cryptocurrency holdings. Still, the transaction adds to concerns about institutional conviction during the current correction phase.
Technical Picture Shows Extended Downtrend From October Highs
Ethereum's price action reflects sustained selling pressure since failing to reclaim the $4,000 region in late October. The cryptocurrency has established a pattern of lower highs and lower lows, unable to break above its 50-day moving average.
This technical weakness indicates deteriorating momentum after months of attempting to build on gains from earlier in the year.
The 100-day and 200-day moving averages are both sloping downward, reinforcing bearish market structure.
Ethereum currently trades below all three major moving averages, a configuration that historically precedes extended corrective periods. Price remains compressed between the $3,000 support zone below and the 50-day moving average near $3,400 above.
Daily candles show long lower wicks forming around the $3,000 level, evidence that some buyers are attempting to defend the zone despite weak overall conviction. A decisive break below $3,000 would expose the next support area around $2,750 to $2,800. Conversely, reclaiming the 50-day moving average would represent the first technical signal of potential momentum reversal after weeks of decline.
Understanding OTC Trading and Support Levels
Over-the-counter trading allows large cryptocurrency holders to execute substantial transactions without impacting prices on public exchanges.
These private deals typically involve institutional investors, trading firms, and companies managing treasury operations. OTC desks like Galaxy Digital facilitate these transactions by matching buyers and sellers away from order books.
Support levels represent price zones where buying interest has historically emerged strong enough to halt or reverse declines. The $3,000 level has functioned as such a zone for Ethereum multiple times in recent months, though repeated tests can weaken support as sellers become more aggressive. Moving averages serve as dynamic support and resistance levels, with the 50-day, 100-day, and 200-day periods most widely tracked by technical traders.
Closing Thoughts
The cryptocurrency faces a critical juncture as selling pressure tests multi-month support levels. Whether the $3,000 zone holds will likely determine near-term price direction and sentiment across the broader market. The combination of weakening technical indicators and uncertain institutional flows creates a challenging environment for both long-term holders and short-term traders.