Ethereum Hacker Buys $18.9 Million Worth of ETH Amid Price Rally

A Coinbase hacker has purchased 3,976 ETH worth $18.9 million, betting on Ethereum's potential breakout. This is the latest in a series of Ethereum purchases by the hacker, who allegedly conducted a $300 million social engineering scam targeting Coinbase users. Ethereum's market cap has recovered, and institutional investors have doubled down on their Ethereum investments. ETH is currently trading at $4,718.92 with a 4.26% rally within the last 24 hours.

A Coinbase hacker has recently purchased 3,976 ETH worth approximately $18.9 million, signaling a bullish stance on Ethereum's potential breakout. This latest move follows a series of Ethereum purchases by the hacker, who is alleged to have conducted a $300 million social engineering scam targeting Coinbase users ETH Whale Alert: Alleged Coinbase Hacker Buys 3,976 ETH ($18.9M) at $4,756, per On-Chain Data^[1]. The transaction, tracked via on-chain data, occurred at a price of $4,756 per ETH, adding to the hacker's existing holdings.

Ethereum's market cap has seen a remarkable recovery, with institutional investors doubling down on their investments. Spot Ether ETFs recorded over $230 million in net inflows this week, reversing the previous week’s trend of nearly $800 million in outflows Crypto Market Cap Reclaims $4.1T Amid ETF Surge^[2]. This surge in institutional interest is accompanied by a significant corporate treasury accumulation of ETH. BitMine, a major institutional player, purchased 202,500 ETH on Monday and an additional $200 million worth of ETH on Wednesday via BitGo Crypto Market Cap Reclaims $4.1T Amid ETF Surge^[2].

Ethereum is currently trading at $4,718.92, up by 4.26% within the last 24 hours. The hacker's purchase at $4,756 establishes a new floor, with potential resistance at $4,900 based on Fibonacci retracement from recent highs. Traders should monitor key support and resistance levels, as well as broader market indicators such as Bitcoin's dominance index and institutional flows, to gauge the impact of these developments.

The hacker's actions contribute to evolving market sentiment, with Ethereum's influence over altcoins and institutional flows potentially affecting ETF inflows into products like the Grayscale Ethereum Trust. Savvy traders might look at derivatives markets, where ETH futures on CME could show rising open interest, indicating hedging against volatility. Moreover, correlations with stock markets suggest that if ETH holds above $4,700, it could signal broader risk-on sentiment, opening cross-market trading opportunities in AI-related tokens that leverage Ethereum's blockchain.

From a risk management standpoint, this incident serves as a reminder of the opaque nature of crypto markets. Traders focusing on technical indicators might identify a bullish engulfing pattern on the ETH/USD daily chart around the $4,756 level, with RSI hovering near 60, suggesting room for upside momentum. However, downside risks remain if liquidation cascades occur, especially with over $500 million in leveraged positions at stake. For those exploring trading strategies, scalping ETH/USDT on 15-minute charts could yield gains if volume sustains above 1 million ETH daily.

Overall, while the hacker's actions inject uncertainty, they also create actionable trading insights. Focusing on confirmed on-chain data and avoiding overleveraged positions will be key to navigating this landscape effectively.