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Will Ethereum Price Lose $2K Line As Hackers Launder $49M via Tornado Cash?

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Ethereum price is up 1.37% to $2307 during the weekend relief rally. This slight uptick following the major downfall in the last two weeks will likely assist sellers in recuperating the bearish momentum. As crypto thieves continue to target the ETH ecosystem, the current correction is at risk of a $2000 breakdown. Do buyers have an opportunity to counterattack?

Ethereum Faces 16% Drop as Cybercriminal Activity Spurs Bearish Momentum

The bearish momentum in the crypto market intensified in September due to increasing cybercrimes. A recent event targeted Ethereum, where four hackers have collectively sent over 20,561 ETH ( worth $49.3M) to Tornado Cash since the beginning of this month.

Within this period, the Ethereum price fell from $2564 to $2150 low on Friday, registering a 16% loss. 

Data from Spotonchain tracker also highlighted Penpie Exploiter as they quickly laundered 11,261 ETH ($26.7M) within just four days of the hack. Meanwhile, the WazirX exploiter still possesses 54,155 ETH ($123M), representing 88% of the total amount stolen.

These recent cyber attacks have created security concerns for major projects and exchanges, further fueling the market FUD (Fear, uncertainty, and doubt).

According to Santiment data, Ethereum transfer to exchanges has steadily increased, reaching a peak of 21.08 million ETH. This sustainability inflow into exchanges often increases the potential for sell-off, and investors might be preparing to sell their holdings.

Ethereum (ETH) supply to exhanges | Santiment Ethereum (ETH) supply to exhanges | Santiment
Ethereum supply to exchanges | Santiment

The Ethereum price daily chart shows a V-top reversal from $2820 to $2300— registering an 18.45% loss. This bearish turnaround below the 50-100-and-200-day Exponential moving average accentuates this high momentum correction trend and potential for prolonged downfall.

If the selling pressure persists, the ETH price could tumble 8% to retest the multi-month horizontal support at $2100, followed by an inclined support trendline at $2000. The latter has been a dynamic support since June 22nd, and each retest to it has doubled the Ether value with the next rally.

Thus, the potential support test is crucial for Ethereum price prediction as a possible reversal could maintain ETH above $2000. The momentum indicator RSI showcasing higher low formation indicates the renewed bullish momentum at these aforementioned levels.

Ethereum (ETH) priceEthereum (ETH) price
ETH/USDT – 1d Chart

However, a bearish breakdown below the support could accelerate the selling pressure.

Frequently Asked Questions (FAQs)

Cyberattacks, such as the recent 20,561 ETH transfer to Tornado Cash, have created security concerns, and contributing to bearish momentum

If selling pressure persists, Ethereum may face an additional 8% drop to retest the $2,100 support level, with the next crucial level at $2,000.

Yes, Ethereum’s price is at risk of breaking below $2,000 due to increasing exchange inflows and recent cybercriminal activity.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Exchange Suspends Trading To Formulate Withdrawal Plan

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Hours after announcing the $23 million bounty program to recover stolen funds, Indian crypto exchange WazirX announced that they would be temporarily pausing trading on the platform as they conduct a forensic data examination.

WazirX Trading Paused, Investors In Panic?

After announcing the WazirX Bounty Program, the crypto exchange announced that the recent cyber attack has impacted its ability to maintain 1:1 collaterals with assets. As a result, they have decided to temporarily pause trading.

The Indian crypto exchange stated that it is conducting forensic data examination as well as security audit procedures to enable withdrawals very soon.

WazirX founder Nischal Shetty said that they would be working to find out the best way to enable withdrawals. “We will need to first analyze all the data to come up with an action plan on what’s the right formula to allow withdrawals since part of the assets have been stolen,” he said.

He further admitted that the path to the total recovery will be longer from here onwards. “Please bear with us while we work towards it,” said Shetty.

Also Read: WazirX Hack Update: Will Investors Get Their Money Back?

Trading Volumes Tank

The trading volumes on the Indian crypto exchange had already tanked on the following day of the $230 million crypto hack. Last Friday, July 19, Bitcoin and many other cryptocurrencies on WazirX were trading at a steep discount to that trading on other local crypto exchanges like CoinCDX, etc. This shows that low trading volumes and liquidity crunch are affecting existing investors.

Over the last weekend, the Indian crypto exchange also faced a large number of phishing attacks with hackers to take advantage of the security vulnerability. Sumit Gupta, CEO of CoinDCX, issued a stark warning to the crypto community regarding fake compensation emails that falsely claim to be from WazirX. These fraudulent emails mimic official communications but are designed to trick users into revealing sensitive information or clicking on malicious links.

Also Read: How the WazirX Hack Affects Crypto Market Prices

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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