Ethereum (ETH) Price Crashes 4% as Hackers Dump 14,064 ETH for $27.5M in Stablecoins

Bitcoin (BTC) crashed 4% from a high of $88.7K on March 24 to 85.1K as of Friday. Due to Ethereum's high correlation with BTC, Ethereum price has shed nearly 12%

Bitcoin (BTC) price slid further on Friday, crashing 4% from a high of $88.7K to 85.1K by 08:00 ET. Due to Ethereum’s (ETH) high correlation with BTC, the second-largest crypto price also slid nearly 12% from a high of $2,104 to $1,854.

While BTC price is known for its rapid moves, especially in 2024, two main reasons for Ethereum price crash.

Firstly, major cryptocurrency analytical platform CryptoQuant.com shared an update on X about Bitcoin’s bearish market outlook. The post highlights a trend where major players, or “whales,” are reducing their leveraged positions.

According to the Inter-exchange Flow Pulse (IFP) indicator, less Bitcoin is flowing from spot to derivatives exchanges, a sign of declining risk appetite among these big investors.

Historically, this downward IFP trend has often signaled bearish price movements for Bitcoin, as seen in the chart spanning 2018 to 2025.

Hence, a further drop in Bitcoin price could also increase the selling pressure for ETH.

Secondly, the second main reason for Ethereum price crash is the en masse dumping of 14,064 ETH, valued at $27.5 million for stablecoin DAI, over the past few hours.

These funds are being reported to be linked to the $1.4 billion Bybit hack that occurred in February 2025.

Large-scale dumps could pressure ETH’s price downward, especially with the crypto market outlook and sentiment already bearish.

Hackers are dumping ETH 🚨 🚨

2 new wallets dumped 14,064 $ETH for $27.5 million DAI in the past few hours.

The amount was received from the Thorchain, Chainflip and it likely belongs to hackers.

When will this stop? 🥺 pic.twitter.com/ob7Ccln2Rt

— Wise Advice (@wiseadvicesumit) March 28, 2025

Despite this recent crash and potential selloffs in the future, the outlook for Ethereum price remains bullish with the anticipation of staking approval from the SEC.

An unusual spike in Ethereum validators joining the network has upped hopes for ETH supporters. The sharp uptick in validator entries indicates growing anticipation among investors and stakers, likely driven by speculation around the approval of Ethereum ETF staking, which could be key in bringing the bullish momentum back to ETH.

This validator rush suggests confidence in Ethereum’s future price potential and staking rewards, especially following its 2024 price climb from $2,300 to $3,300. Will this bullish Ethereum price prediction catalyze a similar rally, but this time propel ETH to tag $5,000 after an explosive move?

The Time Price Opportunity (TPO) chart shows that Ethereum dropping in the composite value area, extending from $1,874 to $1,924. The chances of ETH price stabilizing here are high. Hence, bottoming signals here could be key catching the next swing long trade.

However, the key resistance levels to book profits include – $2,180, $2,236, and $2,362.

These are nPOC or naked Point of Controls, which represents highest trading volume levels for previous days that have not been tagged yet.

Investors need to focus on short-term swings rather than putting out bullish price forecasts due to the uncertain nature of the crypto market outlook due to Bitcoin’s lack of directional bias.