Three Things to Know
Binance is racing to contain a security breach that touched billions of dollars in crypto, and the attacker is swapping loot into ether.
Ether trades below both its 50-day and 200-day averages, with momentum still favoring sellers.
A floor well under the hack-day low now decides whether the slide deepens toward a 19% drop.
Binance froze part of the stolen funds after a major breach and pledged to cover all user losses. Elliptic tied the theft to North Korea.
The attacker is converting some proceeds into ETH, adding supply to a token already down sharply this month. Traders now want to know whether buyers will defend the next floor, or whether hack-driven selling keeps pushing ether lower.
A $6.3 Billion Binance Breach Sends Stolen Funds Into Ether
The exchange estimates the breach touched about $6.3 billion in crypto assets. The attacker may have used a compromised laptop belonging to a DevOps engineer. That access reached a service container, which was then used to authorize withdrawals.
The exchange said it found no evidence that wallet private keys leaked. Binance and industry partners froze roughly $3 billion of the stolen funds. The exchange will cover user losses through its SAFU emergency fund and company resources. Withdrawals are paused for now, while deposits remain open.
The swaps into ETH add selling risk for ether, though they reflect no flaw in Ethereum’s network.
Markets turned risk-off. Bitcoin dropped to around $76,400, its weakest level since Sept 18. Ether briefly touched $2,170, and futures liquidations jumped to about $1.57 billion. For now, the breach appears contained to Binance, unlike the FTX collapse.
Ether Trades Beneath Both Averages After a Rough Month
Ethereum (ETH) daily price with the nearest support (green) and resistance (red). Source: TradingView
Ether traded near $2,290 on Monday, flat over the past day. The longer view tells a harsher story.
The token has lost about 1% over the past week, a modest dip on its own. Over the past month, though, ether has shed roughly 14%. The hack hit a market that was already leaking lower.
Price now sits below the 50-day moving average, which tracks the average close over the past 50 sessions. That line runs near $2,420. Ether also trades under its 200-day average, a longer gauge of trend, at about $2,320.
Both averages now act as ceilings above the price. Each time buyers pushed ether toward them in recent weeks, sellers stepped in and pushed it back down. The 200-day line sits closer, so it marks the first hurdle any rebound has to clear.
The broader pattern on the daily chart shows a downward channel. Each bounce has stalled below the one before it, leaving a string of lower highs. That shape shows traders using rallies to sell.
The channel stays intact until ether posts a higher high.
Sellers Still Hold the Momentum Edge
The Relative Strength Index, a 0 to 100 gauge of momentum, reads about 38 on the daily chart. That puts ether in weak territory. Buyers have lost the upper hand, but the reading has not yet reached oversold levels.
Oversold conditions often slow a decline as bargain hunters step in. Sellers still have room to push further before momentum looks stretched.
Other gauges point the same way. The MACD, which compares short and longer price trends, still points down. Trend strength readings confirm a real trend, and sellers are leading it.
None of these measures shows a turn yet. A bottom would usually start with momentum flattening out, and that has not happened.
Why $1,940 Is the Floor That Matters
Ether’s nearest support sits near $1,940, well under the hack-day low. A drop there would take ether through the level where buyers stepped in during the first wave of selling.
If that floor gives way, the next shelf appears near $1,850. That would mark the 19% fall from current levels. Losing both levels would confirm the downward channel is still extending. It would also suggest that the hack-related selling has found few willing buyers.
Above the price, the first real test sits near $2,400. That resistance lines up closely with the 50-day average, so a close above it would ease the pressure on bulls. Clearing it would put the next ceiling near $2,560 in play.
Two Paths for Ether Over the Next Three Days
The next move likely hinges on which edge of the current range breaks first.
Bullish: A daily close above the first resistance, near the 50-day line, would open a run toward the higher ceiling. A slide back under the 200-day average would cancel that setup and hand control back to sellers.
Bearish: A break below the nearest floor would put the lower shelf in reach and extend the channel. A recovery above that first resistance would void the bearish case and signal that the hack-driven selling has eased.
Bears Keep Control Until the Hack Selling Fades
Buyers have yet to defend a level with conviction, and ether stays tilted lower beneath both averages.
The main risk comes from the attacker’s wallets. Further conversion of stolen funds into ETH would add fresh supply. New details from Binance’s investigation could also rattle traders and speed the slide toward support.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
