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{Ethereum}(ETH) has exhibited limited price movement over the past week, trading within a narrow range of approximately $128. As of August 20, Ethereum's price dropped by 3.75%, settling around $2,617. This decline followed significant market activity, including the sale of 15,000 ETH by a major whale, according to on-chain data.
The recent market correction is linked to speculation surrounding Gary Gensler, the U.S. Securities and Exchange Commission Chair, who is rumored to be a potential candidate for Treasury Secretary should Kamala Harris win the U.S. presidential election in November. This news contributed to the minor correction in Ether's price.
On August 20, Ethereum’s price tested the $2,700 resistance level, only to reverse sharply. This led to over $32.14 million in liquidations for long-leveraged positions. Furthermore, total open interest in Ethereum futures has seen a modest increase of $800 million since August 5, indicating a cautious stance among futures traders.
The funding rate for Ethereum futures has remained predominantly negative, suggesting that short traders are compensating long traders. This trend reflects a prevailing expectation of further downward movement in Ether's price.
In 2024, a notable Ethereum whale contributed to the selling pressure by moving 15,000 ETH on August 20. This whale had previously withdrawn 96,639 ETH from Coinbase in September 2022 at $1,567 per ETH and has since sold over 55,000 ETH at an average price of $3,199. The whale's transactions have yielded a realized profit of $25 million and an unrealized profit of $107 million, reflecting substantial gains.
Technical analysis indicates that Ethereum remains defensive, with the price struggling to maintain above the $2,500 support level. From July 29 to August 12, ETH experienced a 21% decline, with only a 2% recovery since then. Peter Brandt, a veteran technical analyst, notes that ETH/USD continues to exhibit sideways movement and may remain defensive until it surpasses the $3,050 mark. The current technical setup suggests potential further declines to around $2,300 if the price action does not strengthen.
