Ethereum Stagnant, Whale Dumping Sparks Concerns, Analyst: Remains Defensive Until Above $3050Ethereum's price has been consolidating within a narrow range for the past week, with minimal movement, a mere $128 fluctuation. On August 20, ETH price fell by 3
Ethereum Stagnant, Whale Dumping Sparks Concerns, Analyst: Remains Defensive Until Above $3050
Ethereum's price has been consolidating within a narrow range for the past week, with minimal movement, a mere $128 fluctuation. On August 20, ETH price fell by 3.75%, reaching $2,592, sparking concerns about its future trajectory.
"Diamond Hand" Whale Dumps 15,000 ETH
On-chain data reveals that a diamond hand Ethereum whale has offloaded 15,000 ETH in the past 24 hours. This action has amplified concerns about a potential continuation of the downward trend in the short term.
The whale reportedly withdrew 96,639 ETH from Coinbase in September 2022 at a price of $1,567 and began selling in March 2024. In the last six months, the whale has executed five trades, selling over 55,000 ETH at an average price of $3,199, amounting to over $176 million in total.
Currently, the whales address holds over 41,638 ETH, valued at approximately $107 million. The whale's overall realized profit stands at $25 million, while its unrealized profit is $107 million, representing a surge of 110%.
Analyzing the Reasons Behind the Market Pullback
Besides the whale dumping, the decline in Ethereum's price is also linked to the overall market sentiment. On August 20, news emerged about a potential candidacy of Gary Gensler, the SEC Chair, for the position of Treasury Secretary, triggering a market pullback.
Leveraged Traders Suffer $35 Million Liquidations
Despite the relatively minor adjustment in Ethereum's price over the past day, ETH seemed to test the $2,700 resistance level on August 20, prompting leveraged traders to wager on a bullish breakout. However, the price swiftly reversed, leading to the liquidation of over $32.14 million in long-leveraged bets.
Futures Market Signals
The total open interest in Ethereum futures has only increased by $800 million since August 5, suggesting that numerous futures traders are distancing themselves from ETH. The weighted funding rate has also consistently been in the negative territory, indicating that short sellers are paying a premium to long sellers, further hinting at the market's expectation of a future correction in Ethereum's price.
Analysts Perspective: Remain Defensive Until Above $3050
Veteran technical analyst Peter Brandt believes that the ETH/USD chart remains one of continued interest. With the volatility in ETH price remaining subdued, Brandt suggests that Ethereums price will continue to range trade and remain defensive until a break above $3,050.
Disclaimer: This information is for reference only and does not constitute investment advice. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
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