Hackers dump $42.7M stolen Ethereum into Tornado Cash post-WazirX townhall

• On 2 September, WazirX held a digital townhall meeting to discuss their plan to recover stolen funds
• ETH could fall to $2,200 or even lower as it breaks out of the week-long consolidation zone

The recent actions of the WazirX, Penpiexyz, and Fenbushi exploiters have captured everyone’s attention. Especially as they have started moving millions worth of stolen funds amid the market’s bearish sentiment.

On 6 September 2024, the on-chain analytics firm Lookonchain revealed that these hackers deposited a significant 17,800 ETH worth $42.7 million into Tornado Cash in the last three days.

WazirX exploiter moves millions worth of ETH

However, one concern among investors and institutions is the recovery of the stolen funds. On 2 September 2024, WazirX held a digital townhall meeting to discuss their plan to recover the stolen funds from the exploiter. 

Since the meeting, the WazirX exploiter has transferred 7,200 ETH worth $17.3 million into Tornado Cash. It appears that they have no plans to return a significant $235 million worth of crypto. 

Source: X (Previously Twitter)

Additionally, Penpiexyz exploiters, who drained $27 million worth of assets, also deposited a significant 9,600 ETH worth $23 million to Tornado Cash.

In this sensitive market condition, these significant fund transfers may trigger panic and fuel selling pressure.

Ethereum technical analysis and key levels

On the daily charts, ETH’s price action looked super bearish. After the breakdown of the rising wedge price action pattern on a daily timeframe, it consolidated for a week. 

At the time of writing, it was breaking out of that consolidation zone while closing a daily candle below the zone. 

Source: Tradingview

Based on the historical price momentum, there is a high chance that ETH could fall to the $2,200 level or even lower.

On the other hand, the Relative Strength Index (RSI) was in an oversold area which could potentially point to a price reversal. However, given the market conditions and whale activity, this might be unlikely.

ETH’s price momentum

At the time of writing, ETH was trading near $2,374 following a price drop of 1% in the last 24 hours, according to CoinMarketCap. Meanwhile, its trading volume also dropped by 6% over the same period, indicating lower participation from traders amid the market sell-off.

On the contrary, ETH’s Open Interest hiked by 1.2% in the last 24 hours, indicating rising ETH Future contracts amid price decline.