Hackers caused chaos in the crypto world by dumping a huge amount of Ethereum (ETH). This sudden flood of ETH shook the entire market. It left investors worried and raised doubts about the security of the Ethereum network. The sell-off didn’t just hit Ethereum’s price. It also led to large outflows from Ethereum-focused exchange-traded funds (ETFs). This added even more pressure on the digital asset.
Let’s break down what happened, how it unfolded, and why it matters.
Hackers Flood the Market with Ethereum
On March 27, a group of hackers dumped a large amount of Ethereum (ETH). This caused major chaos in the market. Reports say the hackers got the ETH through decentralized networks. They quickly sold it off.
It began when a new wallet, likely owned by the hackers, received 3,433 ETH from THORChain. This is a decentralized liquidity network. The hackers quickly sold all the ETH for 6.8 million DAI (a stablecoin tied to the US dollar). They sold it at around $1,981 per ETH. This was a big deal, but it was only the start.
Soon after, two more wallets linked to the same hackers made even bigger moves. They got 14,064 ETH from THORChain and another exchange called Chainflip. The hackers then sold the ETH for 27.5 million DAI. They sold it at an average price of $1,956 per ETH.
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The hackers sold over 17,000 ETH in a short time. This huge dump flooded the market with Ethereum. It pushed the price down. As the market struggled to handle the extra ETH, speculators jumped in. They added to the selling spree, making the price drop even more.
Ethereum ETFs Hit by Heavy Outflows
The impact of the ETH dump was not limited to direct sales—it also sent ripples through Ethereum-related financial products. On the same day, March 27, Ethereum-focused ETFs recorded significant outflows. These investment vehicles, which allow traditional investors to gain exposure to Ethereum without holding the asset directly, saw a net outflow of $4.22 million.
None of the nine major Ethereum ETFs tracked during this period registered any net inflows. This lack of new investment and the simultaneous withdrawal of funds highlighted a clear decline in investor confidence.
This wave of ETF outflows suggests that even institutional investors, who typically view ETFs as a safer entry point into crypto, are now growing more cautious about Ethereum. The lack of inflows could indicate that big players are holding back from adding more exposure to ETH, at least in the short term.
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Broader Impact on Ethereum and the Crypto Market
The Ethereum dump was not just a standalone event—it highlighted deeper vulnerabilities within the cryptocurrency market. The hackers reportedly exploited weaknesses in decentralized exchanges, raising concerns about the security of these platforms.
The combination of the hack and the ETF outflows put immense selling pressure on Ethereum, making it harder for the token to hold its ground. The flood of ETH into the market also made the cryptocurrency more vulnerable to price swings, as lower demand and higher supply tend to push prices down.
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Even though this was a targeted attack by hackers, the consequences were felt by the entire crypto market. Ethereum’s price volatility and the lack of ETF inflows are clear signs of the widespread impact. For now, the Ethereum community and its investors are left grappling with the aftermath of this massive dump, wondering if the network’s security and stability can hold strong in the face of future attacks.
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