Ethereum Price Risks $2k Breakdown as 20k Hacked ETH Hits Tornado Cash?

During the Sunday trading session, the Ethereum price shows a modest downtick of 0.26% to hit $2268. The selling pressure in the ETH coin gained momentum in September following a series of outflows in U.S-based ETFs and hackers’ attacks. Will the bears extend the correction below $2000 support, or can buyers counterattack for bottom formation?

Ethereum Faces 16% Drop as Cybercriminal Activity Spurs Bearish Momentum

The bearish momentum in the crypto market intensified in September due to increasing cybercrimes. A recent event targeted Ethereum, where four hackers have collectively sent over 20,561 ETH ( worth $49.3M) to Tornado Cash since the beginning of this month.

Within this period, the Ethereum price fell from $2564 to $2150 low on Friday, registering a 16% loss. 

Data from Spotonchain tracker also highlighted Penpie Exploiter as they quickly laundered 11,261 ETH ($26.7M) within just four days of the hack. Meanwhile, the WazirX exploiter still possesses 54,155 ETH ($123M), representing 88% of the total amount stolen.

These recent cyber attacks have created security concerns for major projects and exchanges, further fueling the market FUD (Fear, uncertainty, and doubt).

Four hackers have sent 20,561 $ETH ($49.3M) to #TornadoCash since the start of September!

Notably, among these hacker entities:
• #Penpie exploiter quickly laundered all 11,261 $ETH ($26.7M) within only 4 days of the hack.
• #WazirX exploiter still holds 54,155 $ETH ($123M),… pic.twitter.com/LNWNR4Hsvy

— Spot On Chain (@spotonchain) September 8, 2024

According to Santiment data, Ethereum transfer to exchanges has steadily increased, reaching a peak of 21.08 million ETH. This sustainability inflow into exchanges often increases the potential for sell-off, and investors might be preparing to sell their holdings.

The Ethereum price daily chart shows a V-top reversal from $2820 to $2300— registering an 18.45% loss. This bearish turnaround below the 50-100-and-200-day Exponential moving average accentuates this high momentum correction trend and potential for prolonged downfall.

If the selling pressure persists, the ETH price could tumble 8% to retest the multi-month horizontal support at $2100, followed by an inclined support trendline at $2000. The latter has been a dynamic support since June 22nd, and each retest to it has doubled the Ether value with the next rally.

Thus, the potential support test is crucial for Ethereum price prediction as a possible reversal could maintain ETH above $2000. The momentum indicator RSI showcasing higher low formation indicates the renewed bullish momentum at these aforementioned levels.

However, a bearish breakdown below the support could accelerate the selling pressure.