Ethereum’s price has seen a slight downturn recently, with ETH dropping by 3.75% on August 20. Over the past week, Ethereum has remained largely stagnant, trading within a narrow range with a price difference of just $128.
Ethereum Whale Sells 15,000 ETH
On-chain data suggests that a significant sell-off contributed to the price decline. A large Ethereum whale offloaded 15,000 ETH, worth approximately $39.66 million, over the past 24 hours. This activity is part of a broader trend observed in 2024, where the same whale has sold over 55,000 ETH, generating substantial profits.
Ethereum Open Interest chart. Source: Coinglass
This particular whale, who initially withdrew over 96,000 ETH from Coinbase in 2022, has strategically sold ETH in multiple transactions this year. The investor currently holds around 41,638 ETH, with a realized profit of $25 million and unrealized gains of $107 million.
Market Correction and Liquidations
Ethereum’s recent price drop follows news of a potential political shake-up in the United States. Reports suggest that Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), could be a candidate for Treasury Secretary if Kamala Harris wins the upcoming US presidential election. The uncertainty surrounding this news led to a market-wide correction.
Ethereum whale address transactions. Source: etherscan.io
As a result, Ethereum traders experienced significant losses, with over $32 million in leveraged long bets being liquidated after the price dipped. The open interest (OI) in Ethereum futures has only increased by $800 million since early August, indicating that many traders are currently staying away from ETH.
Analyst Predictions: ETH to Stay Defensive
Veteran analyst Peter Brandt has predicted that Ethereum may remain in a defensive stance until it can close above the $3,050 mark. While ETH has managed to stay above its support range of $2,500, its price action has been weakening. There are concerns that Ethereum could see further declines, possibly dropping to $2,300 if the market remains bearish.
For now, Ethereum appears to be consolidating sideways, with limited upward momentum.
