Ethereum has been seeing some significant downside coming out of the weekend. This was triggered by the FTX hacker, who currently holds hundreds of thousands of ETH, dumping some of those coins for Bitcoin over the weekend. After dumping around 10,000 ETH, the digital asset had dumped more than 7%, as a large number of investors continue tracking the wallet.
More Pain To Come For ETH
Looking at the impact of the FTX hacker selling ETH for BTC had on the market, and seeing the balances of the address, it is no secret that Ethereum is not completely out of the woods yet. There are a lot of eyes on the hacker’s wallet, which contains more than 180,000 ETH, coming out to over $200 million.
Even now, the hacker continues to dump more ETH, putting more sell pressure on the cryptocurrency. On Monday, the hacker dumped another 15,000 ETH which was converted to BTC according to on-chain data. Given the pattern of selling, it looks like the hacker is trying to convert the stolen crypto to BTC, likely running it through a mixer later on.
Continuous selling on the part of the hacker who is now one of the largest ETH whales could cause further damage to Ethereum’s price. Over the last 24 hours, ETH’s price is already down more than 7%, making triple-digit price ranges an increasing possibility for ETH.
ETH falls to $1,100 | Source: ETHUSD on TradingView.com
Can Ethereum Hold Up?
Ethereum bulls continue to fight the selling pressure being created by the FTX hacker dumping coins but there is only so much they can do. During a crypto winter such as the one currently being experienced, prices of cryptocurrencies are already down, making them more susceptible to further declines.
If the FTX hacker were to dump all 180,000 remaining tokens on the market, then there is not enough demand to soak it up at this time. The support at $1,000 is already weakened and would make for easy pickings for bears as well.
Alternatively, the hacker could stop selling coins to wait for a price recovery which would give the market some time to actually find its footing. But sentiment in the space is already dropping and investors have retreated into their shells once more as the Fear & Greed Index points toward extreme fear.
Featured image from MARCA, chart from TradingView.com