Ethereum Defends $2,300 Amid Hacking Debacle… What Are the Whales' Hidden Intentions?

▲ Ethereum (ETH), Crypto Whale/ChatGPT Generated Image ©

Despite a recent massive hacking incident that caused over $10 billion in funds to exit decentralized finance protocols, a major setback, the leading cryptocurrency Ethereum (ETH) has firmly defended its key support level of $2,300, driven by strong accumulation from large whales and easing geopolitical tensions, surprising the market.

According to investment specialized media FXStreet on April 23 (local time), the total fees on the Ethereum mainnet surged to their second-highest level since the massive leveraged liquidation event on October 10. While the London upgrade's fee burning mechanism has led to the positive effect of reduced Ethereum supply, this fee surge is underpinned by a major setback: the $292 million KelpDAO hacking incident. DeFiLlama data shows that in the wake of this hack, approximately $10.7 billion in massive funds exited the Ethereum-based decentralized finance ecosystem in just five days, total locked deposits plummeted to $45.8 billion, and the number of active addresses also showed a clear decline.

Despite this horrific capital outflow and $74 million in cascading liquidations over 24 hours, particularly $62.7 million in forced long position liquidations, Ethereum's price has been stably hovering between $2,300 and $2,400 as of Thursday. The main reasons for this impressive resilience are attributed to improved macroeconomic sentiment due to the extended ceasefire between the US and Iran, coupled with unwavering and aggressive accumulation by large investors.

Notably, Bitmain Immersion Technologies, an Ethereum treasury firm, is acting as a strong defense for the market. According to Lookonchain, a smart money tracking firm, three new wallets strongly suspected to be linked to Bitmain were observed receiving 100,000 ETH from virtual asset custodian BitGo. The company is understood to have further staked 93,600 ETH, increasing its total holdings to a staggering 3.489 million ETH, which is acting as a key driver in absorbing downward pressure.

From a technical perspective, Ethereum is also firmly maintaining a positive short-term trend. On the daily chart, the price is stably moving above the 20-day Exponential Moving Average (EMA) of $2,275 and the 50-day EMA of $2,226, with an upward trend line near $2,308 providing solid support. The 14-day Relative Strength Index (RSI) remains in the neutral zone near 55, and the Stochastic Oscillator also indicates a mid-level, suggesting that the market is not overheated and is accumulating energy within a healthy upward phase.

In the short term, the primary resistance level Ethereum needs to break through is the $2,388 area, which coincides with the 100-day Exponential Moving Average (EMA). If this barrier is completely breached, the price could open the way for an unimpeded ascent towards $2,746. Conversely, if a downtrend begins, the short-term upward trend line at $2,308 and the 20-day and 50-day EMAs will act as the first line of defense. Should these also collapse, the media analyzes that there is a risk of a severe cascading decline, pushing the price down to $2,211, then $2,107, and in the worst-case scenario, to $1,909 and $1,741.

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