Hackers Dump Ethereum, How Does it Impact ETH Market Price?

• Hackers dumped 27.5 million worth of Ethereum in exchange for DAI. 
• Ether is trading at $1,906 with a 6% drop in the last 24 hours. 

On-chain analysts have always been super active in the crypto industry. For a market that operates 24/7/365, on-chain trackers are more than necessary to keep on eye on unusual transactions. Recently, two prominent on-chain tracking platforms found an unusual activity regarding Ethereum dumping. 

As per the latest update from renowned on-chain analyst, Lookonchain, 2 new wallets dumped 14,064 Ether tokens. They received 27.5 million worth of DAI tokens in exchange for selling ETH at an average price of $1,956. 

What made the tracker suspicious of the transactions is that they had just received these Ether tokens from THORChain and Chainflip. While another on-chain tracker, Spot On Chain, raised a suspicion saying, “Coincidence or laundering?” Whereas Lookonchain predicted that the two wallets belong to hackers. 

How did the Ether price impact?

Ether price is trading at $1,895 with more than a 6% drop in the last 24 hours, at press time. The token was trading slightly above the $2,000 price level yesterday and lost that support. Its chart clearly shows a sharp price drop in the Asian morning hours, which plunged the ETH price from $2,003 to $1,913. 

The Ether price drop might have something to do with the dumping of hackers. However, the broader crypto market is also witnessing a drop in its volume today. While Bitcoin is down by 2.27%, overall market cap dropped around 3%. 

Ethereum has been on a disappointing downtrend for the past few months. During the short bull run at the end of 2024, Ether witnessed gains but failed to record a new ATH value. Meanwhile, on-chain development and upgrades are also slowing down the network.

Ether recorded an all-time low value of daily burn rate last week, as per TheBlock statistics. This demonstrates the decrease in on-chain activity. On the other hand, exchange reserves of Ethereum also hit a yearly-low value last week. Whether Ether affirms its position as the second-largest cryptocurrency or loses its position to other blockchain platforms remains a question.