Ethereum Faces Potential Breakdown as Cybercriminal Activity Intensifies

• Cyberattacks and stolen ETH transfers increase market uncertainty, fueling bearish sentiment.
• Rising ETH inflows to exchanges signal potential sell-offs, heightening breakdown risks.
• Ethereum nears crucial $2,000 support as selling pressure mounts from market volatility.

Ethereum is at risk of breaking below the crucial $2,000 support level as recent cyberattacks and rising exchange inflows create uncertainty in the market. The escalating cybercriminal activities, including the laundering of stolen Ethereum, have contributed to the bearish sentiment surrounding the cryptocurrency.

Ethereum experienced a significant downturn in September, driven mainly by cybercriminal activity. Notably, hackers transferred over 20,561 ETH, valued at approximately $49.3 million, to Tornado Cash, a privacy-focused protocol. This movement of funds has raised concerns within the crypto community, as such activities often precede larger sell-offs, contributing to increased market volatility.

The recent hacking incidents have not been isolated. For example, the Penpie Exploiter laundered 11,261 ETH ($26.7 million) within four days of their attack, further exacerbating market fears. 

Additionally, the WazirX exploiter still holds 54,155 ETH ($123 million), constituting 88% of the stolen amount. These events have created significant uncertainty, causing fear, uncertainty, and doubt (FUD) to spread among investors and traders.

According to data from Santiment, Ethereum transfers to exchanges have been on the rise, reaching a peak of 21.08 million ETH. This trend is often associated with an increased likelihood of sell-offs, as investors may be preparing to liquidate their holdings. 

The daily price chart for Ethereum reveals a sharp decline from $2,820 to $2,300, marking an 18.45% loss. This downturn has seen the price fall below the 50, 100, and 200-day Exponential Moving Averages (EMAs), indicating a high-momentum correction. 

Ethereum could see a further 8% decline if the current selling pressure persists, potentially testing the multi-month horizontal support at $2,100. Should this level fail to hold, the next key support lies at $2,000, a dynamic support level that has historically sparked significant rallies.

Ethereum is facing a challenging period marked by increased cybercriminal activity and rising exchange inflows. These factors have contributed to heightened selling pressure, raising the risk of a breakdown below the $2,000 support level.