- Ethereum price is crumbling under strong selling pressure after FTX collapse and the subsequent hack.
- Exploiter who attacked bankrupt FTX exchange is now 36th largest Ethereum holder with 200,735 ETH in their wallet.
- Analysts are bearish on Ethereum and set target levels to stack in its decline, first bid level is $1,015.
Ethereum (ETH) price suffered a meltdown in the aftermath of the FTX exchange collapse and hack. The hacker of the now bankrupt crypto exchange, FTX, still holds 200,735 ETH tokens. Analysts have predicted further decline in Ethereum and set $840 as the last bid for Dollar Cost Averaging.
Also read: Ethereum whales scoop up the altcoin as ETH price hits the $1,200 level
Ethereum price hit by bloodbath and aftermath of FTX exchange hack
Ethereum and altcoin prices started free fall after Samuel Bankman-Fried’s FTX exchange implosion. An attacker exploited the bankrupt exchange and siphoned off upwards of $600 million in customer funds from FTX. Crypto traders are watching every move of the FTX exchange exploiter, the 36th largest holder of Ethereum.
FTX exchange exploiter is the 36th largest ETH holder
The wallet address of the exploiter holds 200,735 ETH tokens. Based on on-chain analysis of the wallet, the exploiter is rapidly swapping Ethereum for renBTC (Bitcoin on other blockchains) and attempting to cash out the funds. Blockchain security expert PeckShield shared details of the swap in a tweet.
#PeckShieldAlert FTX Accounts Drainer 1 currently holds 200,735.1 $ETH (~$235.5M) & drops to the 37th largest holder of $ETH (from 27th)
— PeckShieldAlert (@PeckShieldAlert) November 20, 2022
FTX Accounts Drainer 1 has transffered 50k $ETH (~$58.5M) to 0x866E, then 0x866E swapped these $ETH for ~3,517 $renBTC and bridged out pic.twitter.com/Qokr8bQrvg
Ethereum price crumbled under massive selling pressure and yielded 8% overnight losses for holders, following recent developments. ETHUSD shed close to 30% of its value in November as traders watched the FTX saga unravel.
Is the FTX exchange attacker influencing Ethereum price?
The exploiter behind the now bankrupt FTX exchange hack is one of the largest Ethereum holders in the world. The hacker converted stolen stablecoins to Ether before swapping the largest altcoin for renBTC.
Experts believe that if the attacker sells 200,735 (wallet balance of the exploiter) Ether tokens in the open market, the second-largest cryptocurrency could bleed aggressively. The selling pressure could result in Ethereum’s carnage. However, it remains to be seen whether the hacker sells ETH on exchanges or swaps it for other cryptocurrencies before cashing out the stolen funds.
Analysts eye these levels for capitulation in Ethereum
0xStacker, a pseudonymous crypto analyst, shared the key levels to watch out for as Ethereum price consolidates. The expert’s first bid level is $1,015, the bottom of the summer consolidation range.
ETHUSDT price chart
If bears are in control of Ethereum price, 0xStacker expects ETH to nosedive under the $900 level. The altcoin could swing low to the $882 level and the last line of defense is $840. The technical analyst believes this is the optimal time for aggressive Dollar Cost Averaging in Ethereum.
ETHUSDT price chart
Ethereum gains capped at $1.404 argues analyst
Filip L, a technical analyst at FXStreet evaluated the bullish thesis for Ethereum. If ETH recovers from its decline, the altcoin’s gains are capped at $1,404. The expert believes that the 55-day Simple Moving Average (SMA) at $1,400 and 200-day SMA at $1,540 could act as barriers to Ethereum price in its climb.
ETHUSD price chart
The $1,000 level is key to Ethereum’s price trend. Filip believes a decline below $1,000 could help traders build up positions for a long strategy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.