News that Chinese authorities plan to unload a large batch of seized Ethereum looks quite speculative. First of all, it is based on data from an anonymous researcher, FreeSamourai, raising questions about its reliability. Second, the movement of 7,000 ETH on exchanges is a relatively small volume, and as such could not materially impact the price action.
Meanwhile, Ethereum remains steady near $2,400. The market has brushed off this news so far, which means that there are no real concerns on the part of major players. If the threat of massive sales were real, we would already have seen a flash crash.
The saga of the seized PlusToken assets has been around since 2020, and since then the Chinese authorities have acted very carefully, selling ETH gradually and in small batches. There is no reason to assume that their strategy will change dramatically at this point as it would be irrational on their part, and since a price collapse runs counter to their own interests.
Such news often appears when it makes sense for certain market participants to drum up a negative new flow to push prices lower and then buy at more attractive prices. The way things look now, Ethereum is still positive on fundamentals, and such news dumps are unlikely to have a major impact on the long-term trend.