Ethereum Price Dips 20% as Bearish Signals Prevail: What Next for ETH?

The Ethereum bulls are bleeding as the altcoin has plummeted 20% to $2,283. Despite the sharp decline, its 24-hour trading volume has skyrocketed 262% to $57 billion, suggesting a rise in market activity among traders and investors. This comes as hackers seized the opportunity and acquired Ethereum.

According to the on-chain smart money tracker, hackers are buying more crypto for their portfolio as the broader crypto market is experiencing a sharp decline. The exploiters of Nomad Bridge have begun depositing their recently bought 16,892 ETH to Tornado Cash. The accumulation started as the ETH price dropped to $2,100.

Hackers bought $ETH at the bottom after the market dropped!

The #Nomad Bridge Exploiter spent 39.75M $DAI to buy 16,892 $ETH an hour ago and is depositing $ETH to https://t.co/11PfRBP2j2.https://t.co/8pwhTFSnLw

Crypto bridge #Nomad was exploited for ~$200M on Aug 2, 2022.… pic.twitter.com/9id6bxBR14

— Lookonchain (@lookonchain) August 5, 2024

Notably, hackers of PancakeBunny have also made moves aimed at leveraging the market dip. According to PeckShieldAlert, the hackers acquired Ethereum when the price plunged. According to the details shared by the on-chain monitoring firm, the attackers swapped 7.8 million DAI for 2,922 ETH.

#PeckShieldAlert Our community contributor has detected that the #PancakeBunny exploiter-labeled address aped into $ETH when the market dropped.
The exploiter swapped 7.8M $DAI for 2.922K $ETH.
On May 19, 2021, PancakeBunny’s Bunny Protocol fell victim to a flash loan attack,… pic.twitter.com/wACNvYk0Rn

— PeckShieldAlert (@PeckShieldAlert) August 5, 2024

However, the sudden and significant drop in the price of Ethereum presents a buying opportunity for all traders, investors, and hackers. This could suggest that the current bearish outlook in the market might soon change. On the other hand, Ethereum price faces significant selling pressure with massive liquidations in futures contracts. According to CoinGlass data, $309.54 million was liquidated in longs, while $53.12 million in shorts was wiped out.

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $2,283
• ETH market cap – $288 billion
• ETH total supply – 120 million
• ETH circulating supply – 120 million
• ETH ranking – #2

The Ethereum price began the week in a red zone, dropping significantly below the falling channel. The bears have dominated the market as they capitalized on the death cross formed around the $3,310 mark on August 1. However, the altcoin is undervalued, which may prompt a buy-back campaign by the bulls at this level.

Diving into the technical outlook, the 50-day and 200-day Simple Moving Averages(SMAs) further disadvantage the bulls. The $3,096 and $3,215 act as immediate resistance keys in the ETH market, tilting the odds toward the sellers.

In the same way, the Relative Strength Index (RSI) is currently undervalued, hovering below the 30-oversold regions. It currently sits at 11. However, if the bulls initiate a buy-back campaign at this level and acquire more ETH, its price could rally soon.

Meanwhile, an incoming buy signal from the Moving Average Convergence Divergence (MACD) will call on more traders to buy the dip. This could be manifested if the MACD indicator crosses above the signal line (orange band). Notably, it is wise to wait for a bullish candle above the lower trendline of the falling channel before triggering the buy order.

Ethereum price Could Rally if the Bulls Capitalize on the Dip

The ETH bulls are bleeding, as the odds favor the downside in the 4-hour chart analysis. Moreover, the technical analysis tilts the odds towards the sellers, suggesting further downside if the bulls don’t enter the market. Meanwhile, if the bears keep dominating the ETH market, the price of Ethereum could plunge towards the $2,013 low.

Conversely, with the altcoin undervalued, the bulls might capitalize on the RSI and MACD, triggering a rally. This could cause the ETH price to surge to around $3,083. In a highly bullish scenario, the bulls might flip the 50-day SMA into support, propelling the price to $3,460.