Six hacker-controlled wallets have suffered over $13.4 million in losses after panic-selling Ethereum during Friday’s sharp market decline.
Data from blockchain analytics firm Lookonchain shows the wallets sold 7,816 ETH worth $29.14 million at an average price of $3,728. These sales followed earlier trades that had already placed the exploiters deep in the red.
Earlier in the week, the same wallets purchased 9,240 ETH, valued at $39.45 million, when the token traded at around $4,269. As prices began to fall, they dumped 8,638 ETH for $32.5 million at $3,764 per coin, realizing a loss of $5.5 million. Combined with the latest panic sales, the hackers’ total losses now exceed $13 million.
Repeated Buying and Selling Deepen Losses
Blockchain data reveals that the hacker wallets repeatedly bought into rising prices and sold once the market turned bearish. Lookonchain’s reports show they re-entered positions at higher levels before exiting again at lower prices. The addresses were observed interacting with decentralized platforms, such as the CoW Protocol, and transferring millions of ETH and DAI within hours.
One wallet received more than 6.9 million DAI before exchanging 1,815 ETH through several transactions. Others executed trades between $3.8 million and $6.9 million each within a 15-hour window. These actions suggest panic-driven trading behavior rather than a coordinated investment strategy.
Among the involved wallets is one linked to the hacker who allegedly stole 400 Bitcoin from Coinbase. Blockchain investigators, including pseudonymous analysts Specter Analyst and ZachXBT, confirmed that the exact address later converted stolen Bitcoin into Ethereum to obscure its trail. That address has now recorded substantial losses as it offloads ETH during the ongoing market weakness.
Ethereum Price Pressure and Market Impact
Ethereum’s price decline triggered widespread liquidations across the market. CoinGlass data shows that around $269 million worth of ETH long positions were liquidated on Friday alone. The token remains roughly 22% below its all-time high of $4,900, despite a slight weekly gain of 0.2%.
Crypto trading group Catalyst noted that Ethereum’s chart had already broken below a descending triangle pattern, signaling further weakness. The downturn coincided with a broader market correction that erased more than $100 billion in total crypto capitalization. Ethereum traded near $3,850, while Bitcoin dropped to $103,850 before rebounding to $106,000.
Leverage and Bearish Sentiment Add to Volatility
According to CryptoQuant contributor Amr Tah, open interest on Binance derivatives surged 30% over the past week, one of the highest jumps in recent months. Rising open interest often indicates speculative trading, with many investors using leverage to chase quick gains.
Funding rates on Binance futures turned deeply negative, suggesting an overcrowded short market. Analysts warn that such conditions could trigger a short squeeze if prices recover. The market remains fragile as traders continue to position for further downside, adding to volatility and uncertainty.
The hackers’ panic selling highlights how emotion-driven trading can magnify losses, even among experienced exploiters. With Ethereum and the broader crypto market under pressure, the coming weeks will test whether sentiment can stabilize after another volatile Friday in digital assets.
