Ethereum (ETH) has continued to face selling pressure, with the cryptocurrency market experiencing a decline due to rising Bitcoin dominance and a weak ETH/BTC pair. With no positive sentiment, attempts to move higher remained muted for Ethereum.
Ethereum has witnessed increased attention due to an on-chain address poisoning scam for $12.4 million, along with a decline in prices. Technical factors and security issues have impacted ETH in the short term.
At press time, ETH is trading near $2,640, with a 24-hour trading volume of roughly $36.1 billion and a market capitalization of about $318.6 billion, according to data from CoinMarketCap. The asset declined more than 3.37% over the last 24 hours.
Ethereum Weakens as ETH/BTC Pressure Intensifies
Crypto analyst CRYPTOWZRD has explained that ETH closed the latest daily session in a bearish manner due to the latest weakness in ETH/BTC. Bitcoin dominance is increasing, which means people are holding their capital in Bitcoin rather than moving it to other coins such as ETH.
From a technical point of view, both Ethereum and the ETH/BTC pair have closed in red. CRYPTOWZRD reports that $2,800 is a crucial support area for ETH. However, if this is not maintained, then the price may fall towards the $2,120 area.
In case ETH stabilizes at current levels, a short-term bounce to the resistance zone of $2,800 to $2,880 might occur, but it will largely depend on the movement of Bitcoin.
This analyst also noticed a bearish candle in traditional markets, which could affect risk appetite. As trading is less active during the weekends, Bitcoin’s next move will dictate ETH’s short-term direction.
Also Read | Ethereum Handles 3x More Transactions Than 2021, Price Consolidates at $2,906
Ethereum Hit by Wallet Scam
Apart from market structure, ETH also encountered an important issue in which an address-poisoning scam occurred. Lookonchain reported an incident in which wallet “0xd674” lost 4,556 ETH, which is equivalent to $12.4 million, after sending funds to an attacker’s malicious wallet by mistake.
The attacker had imitated a legitimate Galaxy Digital wallet by matching both the first and last characters and had sent small “dust” transactions to mix in with the legitimate wallet’s transaction history.
This highlights the security risks associated with ETH, which need to be addressed by verifying wallet addresses.
Also Read | Ethereum Whale Behind October Crash Bets Big Again With $304M ETH Move
