Ether’s price is at a critical point following the Bybit exchange hack on Feb. 21, in which over $1.4 billion worth of liquid-staked Ether and other digital assets were stolen.
Ether’s price is at a critical point following the Bybit exchange hack on Feb. 21, in which over $1.4 billion worth of liquid-staked Ether and other digital assets were stolen. This attack is now the largest crypto theft in history, with the North Korean state-affiliated Lazarus Group identified as the main suspect. In response, Bybit has purchased over 106,498 Ether worth about $295 million in over-the-counter trades, recovering nearly 50% of its pre-hack Ether supply. This buying pressure contributed to a 5.38% rise in Ether’s price within two days of the breach.
Since peaking above $4,100 on Dec. 16, 2024, Ether has been on a steady decline. Breaking above the $3,000 level is now seen as a key move to reverse this two-month downtrend. Market analysts believe that if Ether clears the $2,700-$3,000 resistance zone, it could see further gains, particularly if institutional interest continues to grow.
Data from Arkham Intelligence shows that the Lazarus Group’s publicly known wallet holds over $83 million in cryptocurrency, including $3.68 million in Ether. However, this is just a fraction of the estimated $1.34 billion stolen by North Korean hackers in 2024, which, according to Chainalysis, made up 61% of all crypto thefts that year. If the stolen funds remain untouched for now, selling pressure on Ether may be limited.
Another factor influencing Ether’s price is the declining supply across crypto exchanges. CryptoQuant data shows reserves fell to 18.95 million on Feb. 18, the lowest since July 2016 when Ether was trading at around $14. A reduced supply on exchanges can be a bullish sign, as it suggests less immediate selling pressure.
At the same time, Ether faces significant resistance above $2,900 and $3,000. CoinGlass data indicates that a breakout above $3,000 would trigger over $623 million in short liquidations across exchanges, potentially driving the price higher.
Despite the recent volatility, some analysts maintain that Ether’s long-term outlook remains strong. The co-founder and chief operating officer of Redstone blockchain oracle solutions believes that Ethereum’s fundamentals will eventually be reflected in its price. The continued involvement of institutional investors adds to confidence in its long-term trajectory.
While Ether’s price remains under pressure, factors such as Bybit’s recovery efforts, declining exchange reserves, and institutional interest could influence whether it moves past the $3,000 mark. For now, market sentiment will be crucial in determining the next direction.
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