Ethereum Faces Selling Risk as Hacker Holds 490,000 ETH
Ethereum fell below $2,200 on October 30 as investigators traced nearly 490,361 ETH to wallets linked to a $6.3 billion Binance security breach. Bitquery said attackers initially withdrew about 200,630 ETH from Binance and acquired roughly 290,000 more by swapping stolen assets. One attacker-linked wallet received about 195,460 ETH, worth around $440 million at the time.
The holdings had not moved to centralized exchanges or mixing services at the time of Bitquery’s analysis, so they represent potential—not confirmed immediate—selling pressure. Binance says about $3 billion in assets has been frozen and that customer funds will be covered.
Ethereum’s price briefly reached about $2,188. Traders are watching $2,170–$2,200 as near-term support; a sustained break could expose $2,150 and $2,100, while a recovery above $2,250–$2,300 may ease pressure. The hack-related selling risk adds to concerns about whale transfers, exchange liquidity and October outflows from US spot Ethereum ETFs.
Bearish
The news is bearish for Ethereum in the short term because a large volume of attacker-linked ETH creates uncertainty about future supply. If the holders transfer coins to exchanges or sell through other routes, traders may price in that risk before any confirmed sale. ETH’s drop below $2,200 and the cited support range around $2,170–$2,200 add to downside sensitivity; a break could encourage stop-loss selling and expose lower levels near $2,150 or $2,100.
The risk is not proof of an imminent dump. Bitquery reported that the largest balances had not moved to centralized exchanges or mixers at the time of its snapshot, and on-chain transfers are observable. Exchange compliance teams and market participants may therefore react to movements before they become large executed sales. Binance also said about $3 billion had been frozen and that customer funds would be covered, which may limit broader confidence damage.
Historically, hack disclosures and large exchange-linked transfers have often triggered short-lived volatility as traders anticipate liquidation, even when assets are later frozen or recovered. In the near term, ETH price action, wallet movements, exchange inflows and ETF flows are key signals. A recovery above $2,250–$2,300 would suggest selling concerns are easing; a sustained move lower could reinforce bearish momentum. Longer term, the market impact will depend on whether the funds are recovered, frozen or sold, and whether Binance’s liquidity and customer-fund assurances remain credible. The incident may also increase scrutiny of exchange security and custody, but that effect is less likely to outweigh immediate supply concerns unless the stolen ETH is neutralized.