Ethereum price crashed more than 10% on Monday after the replay attack
ETH Price Is Weak Since Successful PoS Shift
The cryptocurrency faces fall to $1,250 and possibly $1,000
Despite the Ethereum merger being successful, the native token ETH/USD has disappointed. On Monday, the price fell in double digits, reaching a low of just under $1,300. That makes the total loss in the Merge week 25%. How far can the price fall further?
A replay attack reported on Ethereum Proof-of-Work accelerated the price drop over the weekend. On September 18, BlockSec discovered that the attack was caused by a replay of a message from the PoS chain. That was because the bridge couldn’t accurately verify the chainID. The attackers allegedly moved 200 WETH through the Omnibridge. They replayed the transaction on the PoW protocol to get another 200ETHW.
The Ethereum team has confirmed the attack. However, it says that the replay of the transaction did not occur in the chain. Rather, it was a repeat of call records due to contract flaws.
As the situation evolves, investors appear to have been cautious. For a chain upgrade just days away, the attack dampens sentiment, affecting ETH price. At the current price, ETH buyers should get in quick. Otherwise, the price can go up to $1,000.
Tech Outlook Shows Ethereum Is Under Pressure
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Source – TradingView
A break of less than $1,400 small support makes ETH vulnerable. The MACD signal has dived 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 is partly due to concerns about Ethereum and broader weak crypto sentiment. We insist on looking for the right $1,250 reversal signals before buying.
Ethereum price could hit $1,250 and move further towards $1,000 if the bear market continues. Investors should not buy at current levels.