Ethereum wavers as Bybit ETH reserves rise after Lazarus hack

Ethereum wavers as Bybit ETH reserves rise after Lazarus hack

Ethereum Holds Steady Amid Bybit Hack Fallout, But Risks Loom

Ethereum's price stabilized at $2,795 on Sunday, recovering slightly from Friday’s low of $2,665. Despite this, it remains 32?low its December 2024 peak. The $1.4 billion Bybit hack linked to the Lazarus Group has raised security concerns, but Bybit’s commitment to covering losses and its $140 million recovery effort are helping restore investor confidence.

Ethereum balances on Bybit have rebounded from 61,000 to over 200,000 ETH, signaling renewed trust. However, technical indicators suggest further downside risk, with a death cross and bearish flag pattern pointing to a potential drop toward $2,155. Will Ethereum defy the charts, or is a deeper correction ahead?

Ethereum Price Holds Steady After Bybit Hack, But Risks Loom

Ethereum’s price has shown resilience despite the massive $1.4 billion hack on Bybit, reportedly orchestrated by North Korea’s Lazarus Group. On Sunday, ETH traded at $2,795, recovering from last Friday’s low of $2,665. However, it remains about 32?low its December 2023 high, raising concerns about its short-term trajectory.

Bybit's Response and Market Confidence

Following the security breach, Ethereum balances on Bybit initially plunged but have since rebounded significantly. According to Coinglass, balances rose to over 200,000 ETH ($558 million), up from Friday’s low of 61,000 ETH. This recovery suggests two key possibilities:

1. Bybit’s Strategic Buying: The exchange may be purchasing ETH to stabilize its reserves and reassure investors.
2. Rising User Confidence: Traders could be redepositing funds after Bybit’s commitment to covering 100% of the stolen assets and launching a $140 million fund to track and recover the stolen funds.

Despite Bybit’s efforts, the hack has reignited concerns over the security of cold wallets, which are generally considered the safest method for storing crypto assets.

Ethereum’s Technical Outlook: A Deeper Drop Ahead?

While Ethereum has held above $2,700, technical indicators point to potential downside risks. The daily chart reveals a death cross—a bearish signal where the 50-day moving average crosses below the 200-day moving average. Additionally, Ethereum has formed a bearish flag pattern, a classic sign of continued downward momentum.

If selling pressure intensifies, ETH could break below its current support and head toward $2,155, the lowest level this year—about 23?low its current price.

Will Ethereum Rebound or Slide Further?

Despite the bearish indicators, Ethereum’s long-term fundamentals remain strong. With upcoming network upgrades and growing institutional adoption, ETH could recover once market conditions stabilize. However, in the near term, traders should brace for increased volatility, with key resistance at $3,000 and critical support at $2,155.