Ethereum saw significant downside coming out of the weekend. This was triggered by hacker FTX, which currently holds hundreds of thousands of ETH, dumping some of those coins for Bitcoin over the weekend. After selling around 10,000 ETH, the digital asset had lost more than 7%, as a large number of investors continue to follow the portfolio.
More pain ahead for ETH
Looking at the impact of the FTX hacker selling ETH for BTC on the market, and seeing the address balances, it’s no secret that Ethereum isn’t completely out of the woods yet. There are many eyes on the hacker’s wallet, which contains over 180,000 ETH, or over $200 million.
Even now, the hacker continues to dump more ETH, which puts increased selling pressure on the cryptocurrency. Monday, the a hacker dumped another 15,000 ETH which was converted to BTC according to the on-chain data. Given the sale pattern, it looks like the hacker is trying to convert the stolen crypto into BTC, likely passing it through a mixer later.
Continued selling from the hacker who is now one of the biggest ETH whales could cause further damage to Ethereum price. In the past 24 hours, the price of ETH has already fallen by more than 7%, making triple-digit price ranges a growing possibility for ETH.
ETH falls to $1,100 | Source: ETHUSD on TradingView.com
Can Ethereum hold up?
Ethereum bulls continue to struggle against the selling pressure created by the FTX hack dumping coins, but there is little they can do. During a crypto winter such as the one we are currently experiencing, cryptocurrency prices are already falling, making them more susceptible to further declines.
If hacker FTX were to dump the remaining 180,000 tokens in the market, there is not enough demand to absorb it at present. The support at $1,000 is already weakened and would also make bear picking easier.
Alternatively, the hacker could stop selling coins to wait for a price recovery, giving the market some time to really settle in. But sentiment in the space is already down and investors have once again retreated into their shells as the Fear & Greed index points to extreme fear.
Featured image from MARCA, chart from TradingView.com
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