A recent $11 million Ethereum transfer has raised alarm across the crypto market. This transaction, tied to the infamous WazirX hack, has fueled concerns about a potential market sell-off. Earlier today, hackers moved the substantial stash of ETH to the crypto mixer Tornado Cash. A well-known crypto analyst issued a dire warning for the leading altcoin amid these developments.
ETH Price Drop Fears Rise After Large Transfers
Blockchain intelligence firm Arkham reported that over $11 million worth of 5,000 ETH was transferred to a new address today. Shortly after, the address sent $1.2 million to Tornado Cash in five separate transactions. Tornado Cash is a service that allows users to obscure the origin and destination of funds on the blockchain, making it a favored tool for cybercriminals. Although the service isn’t illegal, its use in high-profile hacks like this one has drawn attention.
This latest altcoin transfer follows the same hacker’s $4 million move last week. These transfers come amid growing concerns about large Ethereum sales in the market. For instance, as The Bit Journal has reported, Ethereum co-founder Vitalik Buterin transferred nearly $10 million worth of 3,800 ETH across two transactions on August 9 and August 30. Buterin’s wallet has been steadily selling off ETH, recently converting 760 ETH into $1.83 million USDC. Additionally, the Ethereum Foundation sold 450 ETH for $1.03 million in DAI, further stoking fears of price pressure on the altcoin.
Analyst Warns of a Potential 70% Ethereum Crash
Crypto analyst Justin Bennett warned that Ethereum is again testing the diagonal support of its rising channel formation. A rising channel indicates an asset is printing higher highs and higher lows. However, a breakdown is likely if the price drops below the lower support. Based on this, Bennett concludes:
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“This is a crucial moment for ETH. A bounce here is likely, but I still believe we’ll see much lower levels for Ethereum.”
According to his chart, the analyst predicts that Ethereum will drop below its channel support, suggesting a decline toward the long-term trendline. Bennett elaborates:
“A move toward $700 for ETH has been my base case for the past year. Time will tell.”
A drop to $700 represents a more than 69% decline from current levels. As of writing, ETH is trading at $2,330.
Conclusion
With significant market movements, ongoing concerns about large ETH sales, and grim forecasts from leading analysts, Ethereum’s future looks uncertain. Investors should closely monitor developments to navigate potential volatility in the coming weeks.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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