The US government transferred $219,000 worth of Ethereum to Coinbase on July 7, 2025, according to data from Arkham Intelligence. The ETH originated from assets seized in 2022 from scammer Chase Senecal. Although the amount is small, the move sparked fresh concerns over a possible liquidation.
This marks the first such transfer since President Donald Trump took office. The only other exchange transaction under his administration occurred days after his inauguration and involved an even smaller amount. The new transfer comes as the White House works on establishing a national crypto reserve, which includes Ethereum.
Ethereum’s price did not react sharply after the transfer. However, some market participants noted that under President Biden, similar movements of Bitcoin to exchanges preceded larger sales. That pattern led to speculation that this ETH transfer could be a warning sign.
The US government holds over $650 million in Ethereum. This week’s movement involved only a small portion of the ETH confiscated from Senecal, suggesting that a full liquidation is not yet underway. Still, the lack of a public explanation raised uncertainty within the crypto community.
Ethereum Forms Bullish Pennant, Eyes 10% Price Surge Toward $2,817
On July 8, 2025, Ethereum ETH/USDT formed a bullish pennant pattern on the 4-hour chart, as shown in a TradingView analysis. The pattern emerged after a sharp price increase that began on July 1 and continued into early July, pushing ETH to the $2,550 range.
A bullish pennant is a continuation pattern that forms after a strong upward price movement, followed by a brief consolidation shaped like a small symmetrical triangle. It typically signals that the price will resume its upward trend once the pattern breaks to the upside.
As of 05:51 UTC, Ethereum traded at $2,551.7 on the Bitstamp exchange. The pennant’s structure is clear, with converging trendlines and volume tapering during the consolidation phase—both key characteristics of this formation. The price has remained above the 50-period Exponential Moving Average (EMA), currently at $2,519.2, which reinforces the bullish setup.
If confirmed, the breakout from this bullish pennant projects a 10% move from the breakout point. That implies a potential price target near $2,817.8. The target is calculated by taking the height of the previous upward move—the flagpole—and applying it to the breakout level of the triangle.
Ethereum’s volume profile supports the breakout scenario. The volume increased significantly during the flagpole rally and then declined during consolidation, a textbook setup for a continuation pattern. A fresh surge in volume would confirm the breakout, which traders typically view as a strong signal.
At the time of analysis, no external news had triggered the pattern. However, the timing follows shortly after the U.S. government transferred $219,000 worth of ETH to Coinbase—a move that, while minor in scale, raised questions about future Ethereum liquidation plans. So far, the ETH price has remained resilient.
If Ethereum breaks above the pennant resistance with volume support, it may quickly approach the $2,817 target, marking a 10.4% rise from the current level.
Ethereum RSI Holds Neutral Zone, Suggests Room for Upside
Meanwhile, Ethereum’s 14-day Relative Strength Index (RSI) on the 4-hour chart stood at 54.16, based on a TradingView chart captured at 06:02 UTC. The RSI indicator, which measures price momentum, stayed within a neutral range, suggesting Ethereum is neither overbought nor oversold at the moment.
The Relative Strength Index (RSI) is a momentum oscillator that ranges from 0 to 100 and helps identify potential overbought or oversold conditions. Readings above 70 typically indicate overbought levels, while values below 30 suggest oversold pressure.
Ethereum’s RSI holding slightly above 54 points to steady momentum without signaling exhaustion. The RSI also remained slightly above its moving average line, which currently reads 54.65. This positioning shows modest bullish pressure building without triggering a market reversal warning.
During previous rallies in June and early July, Ethereum’s RSI exceeded 60, which aligned with short-term price gains. However, the indicator has consistently returned to neutral territory, signaling balanced market conditions with room for upward movement.
In context with the recent bullish pennant formation seen on Ethereum’s price chart, this RSI level supports the idea of a possible breakout continuation. Momentum indicators are not showing signs of divergence or sudden weakness. This alignment strengthens the technical case for Ethereum to potentially rise by 10%, targeting the $2,817 level.
Ethereum DMI Signals Weak but Improving Trend Momentum
On July 8, 2025, the Directional Movement Index (DMI) for Ethereum showed a mildly bullish signal, based on data from TradingView captured at 06:06 UTC. The blue line (+DI) stood at 21.62, the red line (−DI) at 17.45, and the Average Directional Index (ADX), shown in orange, measured 16.47.
The DMI (Directional Movement Index) is a technical indicator that tracks the strength and direction of a price trend. It consists of three lines: the Positive Directional Indicator (+DI), the Negative Directional Indicator (−DI), and the ADX, which measures trend strength regardless of direction.
When the +DI is above the −DI, it suggests bullish pressure. In this case, Ethereum’s +DI remains above the −DI, indicating a mild upward trend. However, the gap between the two is narrow, which signals weak bullish conviction. The ADX, still below 20, confirms that the current trend lacks strong momentum.
Despite this, the +DI has held above the −DI since July 4, showing that buyers are maintaining slight control. If the ADX rises above 20 in the coming days while +DI remains dominant, it may confirm the beginning of a stronger bullish trend.
This DMI reading supports the technical outlook seen in other indicators, such as the bullish pennant and neutral RSI zone, suggesting Ethereum could be preparing for a breakout toward the $2,817 level.
