Ethereum (ETH) Slides Down Further: 32% WTD Drop, Hitting Its Largest YTD Loss
Sophia Cruz•Monday, August 5, 2024•2 min read
Ethereum (ETH) plummeted 32% in a week, including an 18% drop in the last 24 hours alone, as the overall crypto market experienced its largest decline this year.
Ethereum’s (ETH) daily chart shows a dramatic decline, with the current price trading at $2,299.34, down by 21.14% in the last 24 hours. This drop has pushed Ethereum below the lower Bollinger Band, currently at $2,650, indicating that ETH may be oversold.
The Bollinger Bands show heightened volatility, expanding significantly. Ethereum’s position below the lower band typically suggests the asset is oversold and might be due for a bounce back, highlighting bearish pressure if the price does not recover soon.
ETH’s On-balance Volume (OBV) confirms this bearish sentiment. The OBV currently stands at 43.49 million, having declined sharply in tandem with the price drop, suggesting substantial sell pressure.
As more volume is associated with downward price movements, a continued decrease in ETH’s OBV would indicate persistent selling and potential for further declines in Ethereum’s price.
Meanwhile, Hackers seem to take advantage of the market dip to accumulate ETH. Just a few hours ago, an interesting development unfolded with a massive buying movement. Large price drops are often seen as buying opportunities for some investors, and this seems to be true for the Nomad Brdige hackers. You might recall the attack on Nomad Bridge in 2022, where hackers stole $190 million worth of various altcoins using a chaotic copy-paste attack method.
Now, on-chain data shows these hackers have spent $39.75 million in DAI to purchase nearly 17,000 ETH a few hours ago. It appears that the hackers are attempting to obfuscate the trail of the funds by depositing the purchased ETH into Tornado Cash.
As Ethereum (ETH) price continue to decline due to global market turmoil affecting the whole crypto market, various speculations emerged post-drop. It was particularly noteworthy that Nomad Bridge hackers used this as an opportunity. Experts emphasize that the sudden and significant drop in Ethereum’s price presents a buying opportunity not only for ordinary investors but also for hackers.
This suggests that the current situation might soon shift, indicating that the downtrend and selling pressure could be ending soon.
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.