Ether (ETH) dropped 3.75% on Aug. 20, as another “diamond hand” Ethereum whale sold 15,000 ETH over the past 24 hours, onchain data suggests.
The marketwide correction occurred after it was reported that Gary Gensler, US Securities and Commission Chair, would likely be the Treasury Secretary candidate if Kamala Harris wins the US election in November.
Related: How high can Bitcoin price go in the run-up to the US election?
Ethereum traders suffer $35M in liquidations
Although Ether’s correction over the past day was relatively minor, the leveraged traders relied on a bullish breakout once ETH appeared to test the $2,700 overhead resistance on Aug. 20.
The immediate reversal led to long-leveraged bets suffering over $32.14M in liquidations.
It is also important to note that total open interest has increased by only $800 million since Aug. 5, indicating that many futures traders are staying away from ETH.
The OI-weighted funding rate has been largely negative, which means that short traders are paying long traders, and the dominant expectation is a further correction for Ether price.
Ethereum Whale moves 55K ETH in 2024
One particular Ethereum whale has made profitable moves in 2024 and likely added to the selling pressure over the past months. On Aug. 20, the whale moved 15,000 ETH worth $39.66 million.
The investor withdrew 96,639 ETH from Coinbase in September 2022 at a price of $1,567. The address then commenced its selling spree in March 2024.
Over the past six months, the whale has carried out five transactions, selling over 55,000 ETH at an average price of $3,199, or $176M in value.
The whale address currently holds over 41,638 ETH, or $107M. Overall, its realized profit currently stands at $25M, while its unrealized profit is $107M after 110% gains.
Ethereum will remain defensive before $3,050: Analyst
Ethereum continues to consolidate sideways at the lower end of the bearish trend. Between July 29 and Aug. 12, ETH declined by 21%; since then, it has recovered only 2% of the losses. While it remains above its support range of $2,500, the price action is weakening, and it may open another leg down to $2,300.
A veteran technical analyst, Peter Brandt believes that ETH/USD remains a chart of “continuing interest.” As ETH price volatility remains underwhelming, Brandt suggests the Ether price will continue sideways and remain “defensive” until it can close above $3,050.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.