Emma Nelson 
Amid a broader correction in the cryptocurrency market, Ethereum’s price has taken a significant hit today, plummeting by a robust 8% and slipping beneath the $2,500 threshold. This dramatic drop comes at a time when the world’s largest altcoin appears to be on track for its worst performance in February, having already fallen more than 23% so far this month. Adding to the pressure, the recent hack at the Bybit exchange has further dampened market sentiment surrounding ETH, although some market analysts continue to express cautious optimism about a potential rebound in the near future.
Could Ethereum End February on a Sour Note?
On-chain data provided by SpotOnChain indicates that if Ethereum’s price were to fall below $2,400, it could record its most disappointing February performance in history. Historically, February has been a bullish month for ETH, with the only notable downturn occurring back in 2018. However, the current 23% decline is posing a serious threat to this established trend. The ongoing selloff is further compounded by macroeconomic uncertainties, including new tariffs introduced by the Trump administration, which have added additional headwinds to the market.
Ethereum
At the time of writing, Ethereum is trading at around $2,491, reflecting an 8.44% drop over the past 24 hours, while its daily trading volume has surged by 30% to exceed $30 billion. Crypto analyst Ali Martinez has warned that the much-anticipated altseason could be derailed if Ethereum fails to hold the critical support level at $2,600—a benchmark that is essential to prevent the price from breaking out of the current upward-trending channel.
Signs of Resilience Among Investors
Despite the sharp decline in ETH’s price, on-chain metrics suggest that investor interest remains resilient. Notably, Ethereum whales—large holders who can significantly influence market dynamics—have demonstrated robust accumulation. Data from CryptoQuant reveals that addresses holding between 10,000 and 100,000 ETH have boosted their balances by 24% over the past year, with these accumulating addresses establishing a cost basis of around $2,199 per ETH, compared to the current market price of approximately $2,505. This trend appears to be driven by capital flows from smaller wallets holding less than 1,000 ETH, indicating a strategic redistribution of supply within the ecosystem.
Moreover, CryptoQuant CEO Ki Young Ju has pointed out that the recent Bybit hack has not triggered a significant sell-off in Ethereum. In fact, ETH continues to dominate the stablecoin market, accounting for 56% of the total market capitalization of that sector. With the regulatory environment in the United States becoming more accommodating under the easing policies of the Trump administration, Ki predicts that an increasing number of firms will adopt ETH-based stablecoins and smart contract solutions throughout 2025.
Additionally, the recent approval of Ethereum’s spot ETF provides a regulatory tailwind for the asset, potentially setting the stage for what some are calling a “Large Cap ETF altseason.” This development, along with the upcoming Ethereum Pectra upgrade currently live on the Holesky testnet, could spur significant gains for ETH over the coming months.
Bybit’s Swift Response to the Hack
In the wake of its recent security breach, crypto exchange Bybit has acted quickly to stabilize its operations. Within just 48 hours of the hack, Bybit managed to secure a complete 100% recovery of Ethereum assets needed to cover its financial obligations. On-chain data from Arkham Intelligence shows that the exchange repaid a substantial loan of 40,000 ETH—valued at approximately $100 million—to Bitget, another exchange, within three days. This rapid repayment underscores Bybit’s commitment to meeting its financial responsibilities promptly, even as it navigates the fallout from recent market events.
However, the situation remains complex. Over the past 2.5 days, hackers associated with the Bybit breach have laundered a total of 89,500 ETH, which is valued at around $224 million. This figure represents roughly 18% of the total 499,000 ETH that were stolen in the attack. Reports indicate that the remaining 410,000 ETH is likely to be exchanged for other assets, such as Bitcoin (BTC) and the stablecoin DAI, over the next two weeks, with THORChain identified as the primary tool for facilitating these cross-chain asset exchanges.
In Summary
In summary, while Ethereum is currently enduring its worst February performance on record—with a significant drop driven by both macroeconomic pressures and security incidents—the resilience shown by large investors and recent regulatory and technical developments offer glimmers of hope. With robust on-chain data indicating continued accumulation and strategic moves like the Ethereum spot ETF and the Pectra upgrade, there is cautious optimism among market analysts that ETH could eventually reverse the current bearish trend. Meanwhile, the swift actions taken by exchanges like Bybit to address security breaches further highlight the ongoing efforts to stabilize the market in these volatile times.
