Ethereum Price Declines After Vitalik Buterin's Twitter Account Breach
On Saturday, a post appeared on Buterin's post announcing the release of a batch of commemorative non-fungible tokens (NFTs) from software provider Consensys.
Ethereum creator, Vitalik Buterin, recently fell prey to a Twitter hack that resulted in the theft of $691,000 from users who followed a corrupted link shared on his feed.
The malicious link promised the launch of commemorative non-fungible tokens (NFTs) from software provider Consensys, but instead, it led victims to part with their funds unwittingly.
Dmitriy "Dima" Buterin, Vitalik's father, was among the first to acknowledge the hack, though his post was subsequently deleted. Despite quick responses from Crypto Twitter users, the hacker made off with a substantial sum.
Ethereum Price Reaction and Market Dynamics
In response to the Twitter hack, Ethereum's native token, ETH, experienced a decline of over 2%. However, optimistic traders swiftly placed buy orders behind the scenes, anticipating a potential positive momentum swing.
Current data from 21 crypto exchanges indicates that bullish traders have actively placed orders to buy 643,000 ETH, amounting to approximately $584 million. This figure is nearly 50% higher than the existing sell orders of 431,000 ETH.
Ethereum's Support Amidst Bearish Sentiment
Analyzing on-chain market depth, it's evident that the demand for ETH surpasses the current supply by 211,500 coins. This dynamic creates a strong support zone for Ethereum, ranging from $1,500 to $1,600.
This data not only underscores the resilience of Ethereum within the current market conditions but also signals the strategic moves of traders seeking to capitalize on the prevailing bearish sentiment.
Ethereum Price Analysis
As per CoinStats, the price of Ethereum is $1,616.31, down -0.69% in the last 24 hours, with a live market cap of $194B. It has a circulating supply volume of 120,221,790 ETH coins and a maximum supply volume of 120,221,790 ETH coins, with a 24-hour trading volume of $6B.
Source: CoinStats
The price of Ethereum has recently witnessed a major decline, which has resulted in a violation of key support levels, including the critical 100 and 200-day moving averages. This rejection has also caused the price to go below its previous major swing low of $1,625, resulting in a daily lower low.
This move strongly signals that the market is shifting from an uptrend to a possible negative trajectory.
Furthermore, the 100-day moving average is about to cross below the 200-day moving average, generating a death cross pattern. If this breakout occurs, the market may expect a significant drop towards the $1.4K support level.
Despite the bearish signs, the price has achieved a significant support level defined by the 61.8% Fibonacci retracement. Additionally, The RSI is at 35 which is near the oversold zone.
Source: TradingView
Conclusion
The Twitter hack of Ethereum's creator highlights the vulnerabilities in social media security and sparks a critical conversation about compensating victims of NFT hacks. As the crypto community grapples with these challenges, market dynamics continue to evolve.
Optimistic traders and the strong market support for Ethereum amidst the bearish sentiment indicate a potential for recovery.
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