Key Points
- WazirX held a meeting to discuss recovery of stolen funds, while hackers continue to move large amounts of stolen ETH.
- Technical analysis suggests ETH could drop to $2,200 or lower, amid market sell-off and bearish sentiment.
The digital asset exchange, WazirX, recently held a virtual townhall meeting to deliberate on strategies for recovering stolen funds. This comes in the wake of exploiters from WazirX, Penpiexyz, and Fenbushi moving millions in stolen funds, causing widespread concern.
The on-chain analytics firm, Lookonchain, reported on 6 September 2024 that these hackers had deposited a substantial 17,800 ETH (worth $42.7 million) into Tornado Cash within the past three days.
WazirX Exploiter’s Actions
After the townhall meeting, the WazirX exploiter moved 7,200 ETH (valued at $17.3 million) into Tornado Cash. There seems to be no intention to return a significant $235 million worth of crypto. Penpiexyz exploiters, who drained $27 million worth of assets, also deposited a substantial 9,600 ETH (worth $23 million) to Tornado Cash. These large fund transfers could incite panic and increase selling pressure in the already sensitive market.
Technical Analysis of Ethereum
The price action of ETH on daily charts appears extremely bearish. Following the breakdown of the rising wedge price action pattern on a daily timeframe, it consolidated for a week. At present, it’s breaking out of that consolidation zone with a daily candle closing below the zone.
Historical price momentum suggests that ETH could potentially drop to the $2,200 level or even lower. While the Relative Strength Index (RSI) is in an oversold area, which could potentially indicate a price reversal, current market conditions and whale activity make this seem unlikely.
At the time of writing, ETH was trading near $2,374 after a price drop of 1% in the last 24 hours, according to CoinMarketCap. Meanwhile, its trading volume also fell by 6% over the same period, indicating less participation from traders amid the market sell-off. However, ETH’s Open Interest rose by 1.2% in the last 24 hours, indicating an increase in ETH Future contracts despite the price decline.
