Ethereum Faces Selling Risk From 195,460 ETH Binance Hack Stash
A suspected Binance hack has left an attacker holding 195,460 ETH, worth more than $440 million, in a wallet that cannot be frozen by a token issuer. The coins had not moved by late evening UTC. Binance estimated the incident’s total impact at about $6.3 billion and said it would cover losses; deposits and withdrawals were suspended. Tether and Circle froze most of the stolen stablecoins, while Ethereum itself was not hacked.
The ETH stash is just under 3% of a typical day’s trading volume. Ether fell about 2.6% in under an hour after the news and was trading near $2,230, down about 6% for the week and 17% over the past month. ETH remains below its 50-day average near $2,430 and its 200-day average, leaving both as potential resistance.
Daily RSI is near 30, but MACD and trend readings still point to selling pressure. Traders are watching support near $1,940; a break could expose the next floor around $1,850. A sustained move above the 200-day average near $2,320 would signal improved buying strength. The market’s near-term direction may depend on whether the attacker sells ETH in tranches and on Binance’s resumption of withdrawals.
Bearish
The immediate bias is bearish because a large, potentially marketable ETH balance remains under an attacker’s control while Ether is already in a downtrend. The 195,460 ETH stash is worth more than $440 million and equals just under 3% of typical daily trading volume. If sold in tranches, it could add supply to a market where ETH is below both its 50-day and 200-day averages. The article also reports that MACD remains below its signal line and that trend indicators favor sellers.
The risk is not certain to materialize: the wallet had not moved, and an oversold RSI near 30 can precede a short-term rebound. Traders are likely to monitor wallet transfers, Binance’s withdrawal restart, and support near $1,940. A break below that level could increase selling and expose support around $1,850; a sustained reclaim of the 200-day average near $2,320 would weaken the bearish setup.
Similar concern arose after the February 2025 Bybit theft, when the attacker reportedly sold stolen ETH in tranches over several days. Such events can amplify short-term volatility as traders anticipate supply, even before coins reach exchanges. Over the longer term, the impact depends on whether the ETH is actually sold, how much liquidity absorbs it, and whether Binance restores confidence through its response and proof-of-reserves updates. The incident was not an Ethereum network exploit, so lasting damage to Ethereum’s fundamentals is not established by the article.