Another Hack Coincides with Ethereum (ETH) Price Drop, Back to $100?

Dalmas Ngetich

1 year ago

2 mins read

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Ethereum prices bearish and likely to sink below $135
Hackers wreak havoc at Dragon EX, steal user funds
Transaction volumes low but could surge as bears retest key support levels

Another exchange, Dragon EX, has been breached and user fund stolen demonstrating why it is imperative for assets to be stored at cold wallets away from exchanges. Meanwhile, Ethereum (ETH) is bearish and dropping towards $135.

Ethereum Price Analysis

Fundamentals

Unfortunately, Dragon EX, an established Singaporean cryptocurrency exchange, is the latest hack victim after an undisclosed amount of ETH was stolen on Sunday, according to a recent announcement from the exchange’s Telegram channel. The breach was first noted on Mar 24 forcing the exchange to pull down their services under the guise of system maintenance:

“Dragon Ex is still working on system maintenance due to data exception during which all trading and deposit and withdrawal will be temporally delayed to open until March 25th 18:00.”

However, it took them an extra day before finally admitting of the reputation damaging breach. The team is working with authorities in four countries including Thailand and Hong Kong and has managed to recover some of the stolen funds:

“We’re assisting policemen to do investigation. All platform services will be closed, and the accurate assets loss recovery situation will be announced in a week. For the loss caused to our users, Dragon Ex will take responsibility no matter what.”

Candlestick Arrangement

At the time of press, Ethereum (ETH) is down 3.5 percent from last week’s close and likely to break below $135, invalidating our trade plan. Although there is limited support for bulls, our bullish overview will hold as long as prices are trending above $130 or Mar 5 lows.

If not and prices melt-down in a trend continuation phase confirming losses of Feb 24, the projection of our previous ETH/USD trade plan will hold. In that case, bears may drive prices below $100 towards Dec 2018 lows of $70.

Losses will be magnified if the current BB squeeze is a bear breakout resulting in ETH bear bars banding along the lower BB, away from the middle BB signaling bears and mid-Nov 2018 resumption of sellers.

On the reverse side, if ETH bulls find support anywhere between $130-35 with decent volumes, prices may snap back to bullish catalyzing participation that may drive prices back to $150 and even Dec 2018 highs of $170.

Technical Indicators

Like Bitcoin, ETH prices are sliding lower. Regardless, bears have successfully reversed gains of Mar 15-16 albeit with low volumes averaging 180k or above. For trend continuation, a bull bar with high volumes above 180k must print in line with gains of Mar 15-16. If not and a bear bar prints driving prices below $135, ETH may end up sliding to $100 or worse $70.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

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When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.