Ethereum News Today: PUMP Faces Key Test as 10 Billion Token Unlock Looms August 14

Market observers are closely monitoring the upcoming token unlock for the PUMP token, which could determine its near-term trajectory amid a period of consolidation. The token has been trading within the $0.0024–$0.0025 support zone, a critical Fibonacci retracement level between 0.618 and 0.705, as it builds a base after a sharp decline from $0.003283 [1]. Technical indicators suggest that buyers are defending this area aggressively, with multiple lower wicks confirming support. However, the momentum remains weak, as evidenced by a converging MACD line and a shrinking histogram, signaling indecision among market participants [1].

A major unlock of 10 billion PUMP tokens is scheduled for August 14, 2025. The unlock would represent a 2.83% increase in circulating supply, valued at approximately $28.33 million [1]. This event could introduce substantial volatility, particularly if early holders decide to liquidate their tokens. Analysts caution that such supply-side pressures have historically led to downward corrections in tokens with lower market caps, raising concerns about the sustainability of PUMP’s recent consolidation [1].

Historically, similar tokens have seen sharp declines following large unlocks. For instance, the PUMP token—a different asset—experienced a 60% drop within two weeks of its launch despite a high-profile $600 million market debut [3]. This has increased investor wariness, with many questioning whether PUMP will follow a similar trajectory or stabilize in the face of the upcoming unlock. The key will be whether demand can absorb the expanded supply without breaking the $0.0024–$0.0025 support range [1].

Resistance levels remain a crucial area of focus, with the first key level at $0.002941 and a longer-term target near $0.003554. Traders will be watching for a breakout above $0.0030, particularly with strong volume, as it could indicate renewed bullish momentum. On the other hand, a breakdown below the consolidation range would likely trigger further downward pressure, with the next key support level likely at $0.0023 [1].

On-chain activity remains active, with over 1.4 billion tokens traded in recent sessions, reflecting a constructive consolidation phase. However, red candles near previous highs suggest that profit-taking is slowing the upward momentum. If the token can hold its support zone through the unlock event, a bullish continuation could follow, with potential retests of higher resistance levels. Conversely, a failure to defend the zone could lead to a sharp retracement and renewed bearish sentiment.

The broader market context also remains volatile, with sharp corrections affecting multiple cryptocurrencies recently. While Ethereum (ETH) has shown resilience within a parallel channel and rising on-chain metrics, similar strength has not yet been observed in PUMP [4]. Without a clear shift in market sentiment or strong fundamental support, the token may struggle to break out of its current trading range.

As the market awaits the August 14 unlock, traders are advised to remain cautious and monitor on-chain activity closely. The outcome of this event could serve as a defining moment for PUMP’s short-term direction, with the potential for either a breakout or a breakdown shaping the next phase of its price action.

Source:

[1] CoinMarketCap Community, Major Token Unlock Nears—Is PUMP Ready for a Bounce or More Volatility?, https://coinmarketcap.com/community/articles/688efc001f1bef5b25a434c7/

[2] The, Crypto News Today Live 01 Aug 2025, https://m.economictimes.com/crypto-news-today-live-01-aug-2025/liveblog/123028555.cms

[3] CryptoDnes.bg, Best Meme Coins to Buy Now After PUMP’s Price Drop Has Investors Wondering, https://cryptodnes.bg/en/tag/snorter/

[4] TradingView, Ethereum Token / Tether USD on BSC, https://www.tradingview.com/symbols/ETHUSDT_BE1418.USD/ideas/page-2/?asset=base&sort=recent