WazirX hackers move $6.54 mln ETH: What does this mean for Ethereum?

• There is a high possibility that ETH could fall 4% to the $2,400 level.
• ETH’s reserve on the exchanges has been increasing, indicating higher selling pressure from investors. 

In this bearish market sentiment, a recent transaction of Ethereum [ETH] by WazirX exploiters has created an alarming situation, raising concerns of a massive sell-off.

On the 3rd of September, on-chain analytic firm Spot On Chain made a post on X (formerly Twitter) that exploiters had transferred 2,600 ETH worth $6.54 million to Tornado Cash.

However, the exploiters still held a significant amount of 59,156 ETH worth $148.8 million, across nine different cryptocurrency wallet addresses, at press time.

If they sell off their holdings, ETH may witness a significant price decline in the coming days.  

Ethereum price action

According to AMBCrypto’s look at TradingView data, following the breakdown of a bearish rising wedge price action pattern, ETH seemed to consolidated within a tight range between the $2,400 and $2,555 levels.

If ETH breaks down this consolidation zone and closes a daily candle below the $2,400 level, there is a high possibility it could fall to the $2,200 level in the coming days.

Source: TradingView

Additionally, on a four-hour time frame, ETH looked more bearish as it was at an upper level of the consolidation zone, suggesting a potential 4% price drop to the $2,400 level.

Meanwhile, the altcoin’s Relative Strength Index (RSI) was in an oversold territory, which could potentially signal a price reversal. 

Bearish signs ahead?

AMBCrypto’s look at the Ethereum exchange reserve via CryptoQuant supported the current bearish outlook, suggesting that ETH may experience a price decline.

Since the 29th of August, ETH’s reserve on the exchanges has been continuously increasing, indicating higher selling pressure from investors and institutions.

The exchange reserve typically rises when investors or institutions are preparing to sell off their assets, prompting them to transfer their holdings from wallets to exchanges. 

Source: CryptoQuant

As of press time, the major liquidation levels were near $2,490 on the lower side and $2,550 level on the upper side, as intraday traders were over-leveraged at these levels, according to Coinglass. 

Read Ethereum’s [ETH] Price Prediction 2024–2025

At press time, ETH was trading near the 2,510 level, having experienced a price surge of over 2.7% in the last 24 hours.

Its Open Interest increased by 3.5% during the same period, indicating heightened interest from investors despite the recent price decline.