Emma Nelson 
Ethereum price has experienced a sharp 4% decline, slipping below the $2,700 threshold in the wake of a high-profile hack at Bybit. This incident, which saw the loss of 401,347 ETH—valued at approximately $1.12 billion—has rattled the market, with Ethereum now trading below $2,650 as investor confidence takes a hit.
Bybit Hack Sparks Widespread Market Turmoil
The breach at Bybit, which exploited a vulnerability in its multisig cold wallet by manipulating the transaction signing process, enabled attackers to reroute ETH, stETH, and other assets to an unidentified address. The immediate fallout was dramatic: within just one hour, Ethereum’s price fell from around $2,850 to $2,750. As the stolen funds began migrating across multiple wallets and were eventually directed to decentralized exchanges, fears of further sell-offs mounted. Despite reassurances from Bybit CEO Ben Zhou—who confirmed that client funds remain fully backed on a one-to-one basis—the sheer scale of the incident has left many market participants uneasy about the security of centralized exchanges.
Ethereum Price
Surge in Trading Volume Amid Heightened Uncertainty
In tandem with the price decline, trading volume for Ethereum surged by more than 82%, reaching an impressive $29.46 billion over the past 24 hours. This spike indicates that traders are rapidly rebalancing their portfolios—either liquidating positions to mitigate risk or repositioning in anticipation of further volatility. The increased trading activity is a clear signal of the market’s nervous reaction to the hack, suggesting that the continued liquidation of stolen funds could push Ethereum further down, potentially toward a key support level around $2,500.
Technical Analysis and Market Outlook
From a technical perspective, Ethereum is now testing a critical resistance zone near $2,900, which aligns with its 200-day moving average—a significant barrier for any potential recovery. On the 4-hour chart, Ethereum is in a consolidation phase following a breakdown of a descending wedge pattern and is currently trading near the 0.5-0.618 Fibonacci retracement levels, where selling pressure often intensifies. Additionally, the MACD indicator has confirmed the bearish outlook; with the MACD line crossing below the signal line and the histogram displaying increasing red bars, the data points to growing downward momentum.
Further compounding this bearish sentiment is Ethereum’s declining open interest (OI)-weighted funding rate, which has been dropping steadily since early January and plunged into negative territory around February 6. This trend suggests that futures traders are becoming increasingly bearish, potentially engaging in deleveraging that adds to the overall negative market sentiment.
Wider Implications and External Influences
Beyond the immediate impact of the Bybit hack, external factors are also contributing to market volatility. Recent reports indicate that China’s money supply has nearly doubled, reaching 112 trillion Yuan. Although this influx of liquidity might not have a direct impact on Ethereum’s price, it could influence global risk appetite and indirectly affect the performance of major cryptocurrencies. The combination of this macroeconomic development with the ripple effects of the Bybit hack is likely to intensify market uncertainty, affecting not only Ethereum but the broader digital asset ecosystem.
Conclusion
In summary, the recent 4% drop in Ethereum’s price—triggered by the Bybit hack that resulted in the loss of 401,347 ETH—has led to a surge in trading volume and heightened market anxiety. With Ethereum now trading below $2,700 and technical indicators pointing toward further bearish momentum, there is growing concern that continued selling pressure could drive the price closer to the $2,500 support level. As investors monitor the situation closely, the coming days will be crucial in determining whether Ethereum can stabilize and rebound, or if additional declines are imminent.
