3 Reasons Why Ethereum Is Struggling Today: Will ETH Break $2,000?

On August 5, Jump Trading liquidated over 120,000 WETH, accelerating the sell- off. Though Bitcoin lost over 20% that day, losses were more pronounced on Ethereum, which dumped by nearly 40% from July highs, dropping to as low as $2,100.

PlusToken Ponzi Scheme Tokens Moving, Impact Of The Ronin Bridge Hack.

Beyond the liquidity impact of Jump Trading, large amounts of ETH are being moved from wallets associated with the PlusToken Ponzi scheme, according to Scopescan data. The last time these wallets were moved was in 2021, when Chinese authorities shut down the scam.

The PlusToken Ponzi wallets control roughly $2 billion worth of ETH. Similar to the panic when the United States government moved $2 billion of BTC and when Mt. Gox began distributing BTC, the same is being witnessed. Presently, sentiment has been dented and could depress ETH prices in the short to medium term.

Though minimal, ETH faces more pressure following the Ronin Bridge security breach. While the white hacker has returned roughly 2 million USDC of the reported $10 million lost, the fact that ETH was the main asset stolen is a concern. This is not the first time the Ronin Bridge has lost money. In 2022, it lost over $600 million in a disastrous hack.