ETH Is Bleeding Red WIthout Any Signs For Recovery

ETH has had a rough time. The coin has fallen drastically and has even gone below $2,500 after a massive hacking activity at Bybit where $1.5 billion worth of crypto was stolen. Reports suggest that the attack was carried out by a North Korean state-sponsored group called the Lazarus Group. 

The hack instantaneously triggered a 25% crash. As a result, experts like Benjamin Cowen and others claim that the token might fall below the $1,000 mark. Currently, the price of ETH is not showing any signs of slowing down. It has already broken through some major and important support levels. Therefore, this suggests that the token will continue to drop.

Source: X

ETH Price Historically 

While the general sentiment towards ETH drop is panic, most people believe this is part of the broader market sentiment. Some even went back in the calendar to refer to massive falls in April and August 2024. People used these falls to justify their theory that ETH price boom is just around the corner. This is because in both cases, there was a massive price rally. However, this time, that might not happen.  

ETHUSD Price Chart | Source: CoinMarketCap

Sources suggest that the US Federal Reserve’s monetary policy could also affect the pricing. The Fed controls the amount of money flows into the economy. Sadly, there is no sign of any positive stimuli. If this continues, things can be very bad for the longer run. An anonymous source states, “If the Fed stays firm on tightening, Ethereum could drop below $1,500, possibly testing $1,200 or even lower before stabilizing.” 

ETH is trading in its biggest order block of history. | Source: X

On the other hand, TraderPA believes that the token is now oversold. As a result, the token is currently standing at a crucial support. Therefore, there might be some positive movement of price.  Then again, the token needs to remain above the $2k mark. If the token remains above the $2k mark, it could rise as high as $3.5k to $4k. However, if selling pressure continues, things might have a different outcome.