- Ethereum’s price could be significantly impacted by the potential sale of $202 million worth of ETH by the WazirX hacker, linked to the Lazarus Group.
- This comes just before the launch of the Ethereum ETF, adding to market uncertainty and possible volatility.
ETF Launch vs. Potential Sell-Off
The cryptocurrency market is abuzz with speculation as two major events unfold simultaneously: the upcoming launch of the Ethereum ETF on July 23 and the aftermath of the WazirX hack. The hacker, suspected by on-chain sleuth ZachXBT to be linked to the infamous Lazarus Group, has converted his stolen loot into Ethereum (ETH), accumulating a staggering $201.67 million worth of the digital asset. The market is on edge, wondering if the hacker will dump this massive amount of ETH, potentially triggering another crash.
In a strategic move, Grayscale, an ETF issuer, has dropped its starting fee to 0.15%, making it the cheapest option available, just days before the Ethereum ETF launch. This move undercuts Franklin Templeton’s fee of 0.19%, making the ETF space highly competitive.
Ethereum’s Stagnant Price and Technical Indicators
Despite the looming threat, Ethereum’s price has remained stagnant over the past day. The asset’s price trends above the 50-day and 200-day simple moving averages (SMA) on the 4-hour timeframe, indicating a bullish uptrend is still intact. Ethereum is also forming a bullish pennant within a symmetrical triangle, suggesting that the price will likely continue to trend within this structure over the weekend and into the next week.
Technical indicators, however, reveal some weakness among the bulls. The relative strength index (RSI) hit 60.68 on July 15 before retracing downward and is currently near its moving average at 57.49, indicating decreasing bullish momentum. The Chaikin money flow (CMF) indicator supports this, barely staying above the zero line and showing signs of reducing buying pressure.
Price Prediction Amid Uncertainty
The Ethereum price forecast remains cautiously optimistic despite the potential sell-off by the WazirX hacker. The price is expected to bounce between $3,400 and $3,500 over the weekend. If the price breaks to the upside of the symmetrical triangle, it could see an 18% upswing, reaching $4,100. Conversely, the ETH price may find support at $3,300 if the bearish trend prevails.
Market Implications
The intentions of the WazirX hacker with the accumulated Ethereum remain unknown. If the hacker decides to dump the ETH, the market could face significant selling pressure, potentially leading to a broader market crash and overshadowing the much-anticipated Ethereum ETF launch. The crypto community is watching closely, as the hacker’s actions could have far-reaching implications for Ethereum and the broader market.
The Ethereum market stands at a critical juncture. The upcoming ETF launch and the potential sell-off of $202 million in ETH by the WazirX hacker create a high-stakes scenario. Investors and traders should brace for volatility and stay informed as the situation unfolds.
