Bitrue Hacker Activity and Rising Open Interest Suggest Potential Bullish Momentum for Ethereum

• The Bitrue hacker’s recent ETH purchases and significant exchange outflows suggest a potential resurgence of bullish momentum in the Ethereum market.

• Over 140,000 ETH were withdrawn from centralized exchanges in a single day, marking the largest outflow in over a month and indicating strong accumulation trends.

• According to COINOTAG, the Bitrue hacker strategically repurchased ETH at lower prices after selling at peak levels, demonstrating sophisticated capital management.

Ethereum sees renewed bullish signals as the Bitrue hacker buys ETH at lower prices and exchange outflows surge, highlighting growing market confidence and tightening supply.

Bitrue Hacker’s Strategic ETH Reacquisition and Exchange Outflows

On March 10, 2024, the Bitrue hacker sold 4,207 ETH at an average price of $3,885, converting the proceeds into 16.34 million DAI. Recently, this same address utilized that DAI to repurchase nearly 3,000 ETH at a significantly lower average price of $2,769. This maneuver underscores a calculated approach to capital deployment, capitalizing on Ethereum’s price correction.

Data from Lookonchain reveals multiple substantial swaps involving DAI to ETH conversions, including a notable 1.2 million DAI swap for 433 ETH. Following these transactions, the hacker routed the ETH through Tornado Cash, a privacy-focused mixer, to obscure the trail of funds.

Source: Lookonchain

Simultaneously, Ethereum experienced a significant outflow of over 140,000 ETH, valued at approximately $393 million, from centralized exchanges. This represents the largest single-day withdrawal in over a month, signaling strong accumulation by long-term holders and a potential reduction in readily available market supply.

Source: IntoTheBlock

This substantial withdrawal reduces liquid ETH supply on exchanges, which could create scarcity in the event of a demand surge, potentially driving prices higher. The combination of the hacker’s timely reentry and the large-scale outflows points to growing bullish confidence and the possibility of a tightening supply dynamic.

Open Interest Surge and Its Impact on Ethereum’s Bullish Outlook

Ethereum’s Open Interest (OI) recently reached a new record high, reflecting increased trader participation and a surge in institutional volume. This uptick in OI coincides with capital rotation from Bitcoin to Ethereum, indicating renewed risk appetite among investors favoring ETH.

The rise in OI has been supported by significant inflows into Ethereum ETFs and heightened call option activity, which collectively add momentum despite ETH facing resistance in the $2,800 to $2,880 range.

Source: CryptoQuant

However, despite the bullish signals from OI, Ethereum’s price encountered resistance, leading to some profit-taking and a slight decline in OI. Technical indicators, such as a bearish MACD crossover, suggest caution in the short term.

Key resistance at $2,880 remains critical; a decisive break above this level, supported by rising OI, could confirm the bullish trend. Conversely, failure to breach this zone may result in a period of consolidation as the market digests recent gains.

Conclusion

The Bitrue hacker’s strategic ETH repurchases combined with significant exchange outflows and record-high Open Interest collectively highlight growing bullish sentiment in Ethereum’s market. While technical resistance and short-term profit-taking present challenges, the underlying capital flows and accumulation patterns suggest a tightening supply that could support future price appreciation. Investors should monitor the $2,880 resistance closely, as a sustained breakout may validate the emerging bullish thesis for ETH.