As a seasoned analyst with years of market observation under my belt, I can confidently say that Ethereum’s current situation is a tricky one.
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 downward trend in the crypto market grew stronger in September, largely due to a surge in cybercrimes. Notably, a recent incident involved four hackers who transferred approximately 20,561 ETH (equivalent to around $49.3 million) to Tornado Cash since the start of this month.
During this timeframe, the cost of Ethereum dropped from $2564 to a low of $2150 on Friday, resulting in a 16% decrease.
Information from Spotonchain’s tracker further pointed out the Penpie Exploiter for swiftly washing their hands of 11,261 ETH (approximately $26.7 million) within a mere four days following the hack. Conversely, the exploiter on WazirX continues to hold onto 54,155 ETH ($123 million), which makes up about 88% of the total funds stolen.
Lately, these cyber attacks have stirred up worries about security for significant projects and trading platforms, adding more anxiety and skepticism in the market.
Four hackers have sent 20,561 $ETH ($49.3M) to #TornadoCash since the start of September!
Significantly, among these hacking groups:
— Spot On Chain (@spotonchain) September 8, 2024
Based on information from Santiment, there’s been a consistent rise in Ethereum transfers to exchanges, peaking at approximately 21.08 million ETH. Such an influx into trading platforms can signal a higher likelihood of a sell-off, implying that investors could be gearing up to offload their assets.
The daily Ethereum price graph indicates a steep reversal from $2820 to $2300, representing a 18.45% drop. This sharp downturn falls below the 50-day, 100-day, and 200-day Exponential Moving Averages, emphasizing a strong correction trend and suggesting a possible extended decrease.
If the selling force continues, the price of ETH might decrease by around 8%, potentially returning to a significant horizontal support level at approximately $2100. After that, an ascending support trendline at $2000 could come into play. This trendline has been acting as a strong support since June 22nd, and each time Ether returns to it, the subsequent surge in value has almost doubled.
In summary, the potential support test plays a significant role in forecasting Ethereum’s price since a potential reversal might help keep ETH above $2000. Furthermore, the RSI momentum indicator, which is displaying higher low formations, suggests a resurgence of bullish sentiment at these specified levels.
However, a bearish breakdown below the support could accelerate the selling pressure.
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2024-09-08 15:22