Ethereum tanked yesterday following the news of Binance security breach, which reportedly resulted in approximately $6.3 billion being drained from wallets across multiple blockchains. It was the largest cryptocurrency heist in history. The hack raised concerns about exchange security and potential contagion across the crypto ecosystem. Although Binance pledged to cover customer losses, uncertainty surrounding the stolen assets and potential liquidations weighed on sentiment.Around $1.53 billion in leveraged positions were liquidated over 24 hours. While the Binance hack triggered the initial shock, leveraged positioning and cascading liquidations magnified the losses.Historically, cryptocurrency selloffs triggered by exchange hacks have often been followed by a recovery, but the economic context decided how quickly. The initial reaction tends to be driven by panic, uncertainty and forced liquidations rather than a deterioration in the fundamentals of cryptocurrencies. The macro picture is still largely bearish given inflation risks, growth concerns, risk-off sentiment, upcoming rate hikes and geopolitical tensions. A significant improvement in risk sentiment is likely needed to change the current trend. Possible catalysts include a breakthrough in US-Iran negotiations and dovish Fed comments. ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that Ethereumpulled back to retest the broken 2,360 support and eventually dropped to new lows. The sellers will likely continue to target the 1,900 level but if we get a pullback before that, we can expect the sellers to lean on the downward trendline, with a defined risk above it, to keep pushing into new lows. The buyers, on the other hand, will want to see the price breaking above the trendline to open the door for new highs and pile in for a rally into the 3,400 resistance next.ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see the price broken below the minor upward trendline that was defining the recent pullback. There’s not much we can glean from this timeframe, so we need to zoom in to see some more details.ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor resistance zone around the 2,280 level where the price got rejected from several times in the past days. If the price gets there, we can expect the sellers to step in, with a defined risk above the resistance, to keep targeting the 1,900 level. The buyers, on the other hand, will want to see the price breaking higher to extend the pullback into the downward trendline. The red lines define the average daily range for today.UPCOMING CATALYSTSTodaywe conclude the week with the US Employment Cost Index. This article was written by Giuseppe Dellamotta at investinglive.com.