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Ethereum‘s price is currently trading at $1,637, down 4%. ETH price recovered a bit after dropping to $1,524 on August 20. Although the bulls seem to be facing a hurdle at $1,720 at the moment, there are three factors that could push ETH price down in the short term.
Increasing supply in the stock markets
Santiment noted that there was a huge spike in the supply of ETH on exchanges just before the price dropped. It was noted that this increase was due to Binance moving ETH from an untagged wallet to an existing tagged wallet. As reported by U.Today, large crypto fund transfers involving Binance wallets have been detected. A large transfer of 2.37 billion USDT between two Binance cold wallets and a large transfer of 1.49 million ETH went to Binance 8 wallet.
Concerns about merging
During the Ethereum upgrade in 2016, the network was under constant attack from so-called replay attacks where hackers repeated user actions to obtain tokens. The most relevant issues can also arise from the emergence of Ethereum branches during the Merger. In the case of a chain fork, a copy of the entire Ethereum ecosystem will be created, including all its coins, NFTs and applications. However, ETH creator Vitalik Buterin assures the community that the “forks” will not harm the original ETH network.
According to Santiment, Ethereum shows an increasing correlation with the S&P 500. The Kansas City Federal Reserve Bank’s annual meeting continues in Jackson Hole, Wyoming. After raising the benchmark rate by three-quarters at each of the two previous policy meetings, investors will be listening closely for clues on how the US central bank thinks about the pace of rate hikes through September. 20-21 policy meeting.