The ongoing actions of the hackers behind the WazirX, Penpiexyz, and Fenbushi exploits have raised significant concerns in the cryptocurrency community. These hackers have started moving millions of dollars in stolen Ethereum amid an already bearish market.
On 6 September 2024, the on-chain analytics firm Lookonchain revealed that the attackers had deposited a massive 17,800 ETH, valued at $42.7 million, into Tornado Cash over the past three days.
WazirX Hacker Transfers Millions of ETH
A key concern for investors and institutions is the recovery of these stolen funds. On 2 September 2024, WazirX held a digital townhall meeting to outline its recovery plan. However, since that meeting, the WazirX hacker has moved 7,200 ETH, worth $17.3 million, into Tornado Cash. This suggests that the hacker has no intention of returning the stolen $235 million in cryptocurrency.
Penpiexyz Hacker Also Dumps ETH
Similarly, the hackers behind the Penpiexyz exploit, who drained $27 million in assets, deposited 9,600 ETH, valued at $23 million, into Tornado Cash. The timing of these transfers, amid a bearish market, has heightened fears of panic selling and increased pressure on Ethereum prices.
Ethereum Price Analysis
From a technical perspective, Ethereum’s price action looks bearish. The daily chart shows a breakdown from a rising wedge pattern, followed by a week of consolidation. ETH is now breaking out of that consolidation zone and closing below it, signaling further downside risk.
At the time of writing, ETH is trading near $2,374, after a 1% drop in the past 24 hours, according to CoinMarketCap. Trading volume also fell by 6%, indicating decreased market participation amid the sell-off. However, Open Interest in ETH futures rose by 1.2%, pointing to rising interest in short positions as prices continue to decline.
Future Price Outlook
Given the current market conditions and whale activity, ETH could drop to the $2,200 level or lower. While the Relative Strength Index (RSI) is in oversold territory, suggesting a potential price reversal, the ongoing movement of stolen funds and market sentiment make a swift recovery unlikely.
Source: Lookonchain, CoinMarketCap, TradingView
