Ethereum (ETH) Could See Huge Selling if FTX Hacker Dumps

The scars of the FTX collapse last week still continue to exist in the crypto market. The FTX hacker, who reportedly stole $600 million worth of assets from the exchange, has been selling all other stolen assets and amassing ETH in massive quantities.

This could serve as a warning bell for Ethereum investors as the hacker could possibly dump all of the Ethereum to cash out. Popular crypto analyst Dylan LeClair recently wrote:

The FTX exploiter, who has been dumping all other drained assets for ETH, is now one of the largest holders in the world, with 228,523 ETH ($284.82m) currently in their wallet. Everyone should keep an extremely close eye on what happens next…

The FTX exploiter address has been converting all other assets such as $PAXG, $DAI, etc. into ETH over a series of multiple transactions. As of now, a staggering 95% of the address’s assets are in ETH and a very small percentage i.e 5% is in $PAXG stablecoin.

On-chain data provider Santiment reported: “This #FTX exploiter address has received funds from 100+ different addresses, with the largest being a total of 100,614 $ETH from address 0x9008d19f58aabd9ed0d60971565aa8510560ab41. 

Ethereum ETH Whale Holdings on A Decline

Another cautious signal for Ethereum investors is that the ETH whale holdings have been on a decline. The supply among the top whale addresses has dropped to a nine-month low. As per on-chain data provider Santiment:

Ethereum’s 100k+ $ETH addresses have dropped their collective holdings significantly since Nov 4th. Likely related to #FTX address shuffling, this blue line has correlated somewhat with price. But it may be anomalous under these unique circumstances.

As the FTX crisis unfolded, Ethereum (ETH) has already faced a major blow correcting more than 25% over the last week. If another major dump comes ahead, ETH could probably tank all the way to $1,000 and even below.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.