WazirX held a meeting to discuss the recovery of stolen funds as hackers continue to move large amounts of stolen ETH.
WazirX Exploiter’s Actions
After the townhall meeting, the WazirX exploiter moved 7,200 ETH (valued at $17.3 million) into Tornado Cash. There is no intention to return a significant $235 million worth of crypto. Penpiexyz exploiters, who drained $27 million, also deposited 9,600 ETH (worth $23 million) to Tornado Cash. These large fund transfers could create panic and increase selling pressure in an already sensitive market.
Technical Analysis of Ethereum
The daily charts show extremely bearish price action for ETH. Following the breakdown of the rising wedge price action pattern on a daily timeframe, ETH consolidated for a week. It is currently 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 typically indicates a price reversal, current market conditions and whale activity make this seem unlikely.
Market Implications
At the time of writing, ETH was trading near $2,374 after a 1% drop in the last 24 hours, according to CoinMarketCap. 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.
The WazirX townhall brings up critical questions about the strategy for recovering stolen funds, while heightened hacker activity and bearish market conditions apply pressure on ETH prices.
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