Ethereum price crashed by more than 10% on Monday after the replay attack
ETH price has been weak since a successful PoS shift
The cryptocurrency faces drop to $1,250 and potentially $1,000
Despite the Ethereum merge occurring successfully, the native token ETH/USD has disappointed. On Monday, the price fell by double digits, touching a low of slightly below $1,300. That makes the total losses in the Merge week 25%. How far can the price fall further?
A replay attack reported on Ethereum Proof-of-Work accelerated the decline in price over the weekend. On September 18, BlockSec found that the attack occurred through a replay of a message from the PoS chain. That was because the bridge failed to authenticate the chainID accurately. The attackers are said to have moved 200 WETH via the Omnibridge. They replayed the transaction on the PoW protocol to get another 200ETHW.
The Ethereum team has confirmed the attack. However, it says the transaction replay did not occur on-chain. Rather, it was a call data replay due to shortcomings in the contract.
As the situation unfolds, investors seem to have exercised caution. For a chain upgrade that is just days away, the attack dampens sentiment, which is affecting ETH price. At the current price, ETH buyers have to come in quickly. Otherwise, the price could head to $1,000.
Technical outlook shows Ethereum under pressure
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A break below $1,400 minor support makes ETH vulnerable. The MACD signal has dipped further into the bear zone. The next potential support is $1,250. ETH at $1,000 is still a possibility, the main support zone. That’s partly due to the Ethereum concerns and the broader weak crypto sentiment. We insist on watching for proper reversal signals at $1,250 before buying.
Ethereum price could touch $1,250 and proceed to $1,000 if the bear market continues. Investors should not buy at the current level.