Ethereum News Today: Fidelity moves $50M ETH to Coinbase amid BlackRock ETF outflow and ETH price drops 4%

Fidelity Investments has sparked concerns of a potential sell-off in Ethereum (ETH) after reportedly transferring over $50 million worth of the cryptocurrency to Coinbase. According to data from Arkham Intelligence, a wallet linked to Fidelity Custody sent 10,000 ETH and 4,978 ETH—valued at $35.77 million and $17.8 million respectively—to the exchange within a five-minute window on August 5 [1]. This movement followed a 6,000 ETH deposit from a Fidelity-linked address just hours earlier, suggesting a strategic buildup before a potential transfer or liquidation [1].

The activity has raised speculation that Fidelity or a related custodian may be preparing to offload a significant Ethereum position. The same wallet has been active over the past month, receiving inflows from major custodians and transferring assets to hot wallets connected to exchanges [1]. This pattern has led to speculation about institutional profit-taking or hedging ahead of potential market volatility.

Notably, Fidelity is not the only major player offloading Ethereum. BlackRock’s spot Ethereum ETF recorded its largest single-day outflow since its launch on August 4, with 101,975 ETH—worth approximately $375 million—leaving the fund [1]. This marked the end of a 21-day streak of inflows and reduced the fund’s holdings by about 3%, signaling a possible shift in institutional demand for the asset.

As of press time, Ethereum was trading at $3,587, down more than 3% in the past 24 hours and down 4% over the past week [1]. Analysts suggest that the cryptocurrency will need to hold the $3,500 support level to push toward the $4,000 resistance mark.

The combined actions of Fidelity and BlackRock have intensified bearish sentiment in the Ethereum market, raising questions about broader institutional strategy and market confidence in the asset.

Source: [1] Fidelity triggers sell-off fears for this crypto after dumping over $50 million

https://finbold.com/fidelity-triggers-sell-off-fears-for-this-crypto-after-dumping-over-50-million/