Breaking News: Bybit Hack Rocks Market with $1.46 Billion ETH Stolen
In a shocking turn of events, the Bybit hack has sent shockwaves through the market today, resulting in the theft of over $1.46 billion worth of ETH, making it one of the largest security breaches in history. The repercussions of this breach were immediately felt as Ethereum's price took a hit, plummeting by 5% and impacting critical technical indicators.
The aftermath of the hack has sparked intense speculation about Bybit's possible actions moving forward. There are whispers of a potential market buyback by Bybit to compensate affected users, a move that could potentially exert significant buying pressure on the market. However, the future trajectory of Ethereum's price remains uncertain as the situation unfolds.
Will Bybit's Proposed Buyback Plan Come to Fruition?
Earlier today, Bybit, one of the leading crypto exchanges, fell victim to a devastating hack that saw a staggering $1.46 billion of Ethereum stolen from its hot wallets. This breach has been described as one of the most significant security breaches in the history of cryptocurrency.
Bybit's CEO, Ben Zhou, revealed that the attackers managed to exploit a loophole in the security system, manipulating wallet signers to unknowingly approve changes to the smart contract logic, effectively handing control to the hacker.
As the stolen ETH gets liquidated, Ethereum's price witnessed a sharp decline of over 4%. It didn't take long for the hacker's addresses to start dispersing the ill-gotten gains across multiple wallets.
Eyewitnessing the Bybit Hacker in Action. Source: Nansen.
The crypto community is abuzz with speculation regarding Bybit's strategies to recover the pilfered funds and provide relief to affected users.
Market analysts are pondering the possibility that if Bybit fails to reclaim the entirety of the stolen $1.5 billion, they may resort to market-buying ETH to safeguard user funds, potentially triggering a bullish surge. Nevertheless, nothing is set in stone, and the timeline and feasibility of Bybit's remedial actions remain uncertain.
Notably, there were reports indicating that a Bybit cold wallet executed a transfer exceeding $500 million to another Bybit wallet, suggesting a potential preparation for user reimbursements in the aftermath of the breach.
Essential Indicators on How Stolen Assets Are Impacting Ethereum's Price
The recent Bybit hack had a tangible impact on Ethereum's Relative Strength Index (RSI), causing a notable drop from 62.8 to 51.6 within a brief span.
This sudden plunge signifies a sharp loss in buying momentum, reflecting an upsurge in selling pressure as the misappropriated ETH is offloaded.
While the RSI still hovers above the neutral 50 threshold, the steep decline indicates a substantial weakening of bullish sentiment.
Observing ETH's RSI at 51.6, it currently lingers in a neutral territory, indicating a balanced interplay of buying and selling pressures. Noteworthy is the fact that ETH's RSI has maintained neutrality since early February, underlining a phase of market indecision and consolidation.
A fall below 50 in the RSI could signal a bearish trajectory, whereas a surge above 60 would indicate renewed buying enthusiasm.
Concurrently, Ethereum's Directional Movement Index (DMI) chart reveals that its Average Directional Index (ADX) stands at 14.9, hinting at a feeble trend.
Riding the Waves with ETH DMI. Source: TradingView.
In contrast, the +DI has dwindled from 29.6 to 20.94, reflecting a slide in buying pressure post-Bybit hack. Conversely, the -DI has surged from 11.3 to 16.3, illustrating increased selling pressure as the stolen Ethereum is liquidated.
This shift in momentum denotes a shifting market sentiment, with sellers assuming a more dominant role in influencing price movements.
With the ADX remaining relatively subdued, Ethereum appears poised for a phase of consolidation, lacking evident directional impetus. However, should the -DI persistently overshadow the +DI, ETH might encounter heightened selling pressure, potentially leading to downward price corrections.
Anticipating Ethereum's Market Trajectory Post-Hack
Should liquidations persist or user trust wane in the aftermath of the Bybit incident, Ethereum could potentially test the support level at $2,551.
Cracking below this critical level may pave the way for a descent towards $2,160, signifying an escalation in selling pressures.
Mapping the Path Ahead for ETH Price. Source: TradingView.
Conversely, in a scenario where Bybit manages to recuperate the stolen assets or witnesses a surge in significant buying activity, Ethereum's price might challenge the resistance at $3,020. A breakthrough at this juncture could propel the price towards $3,442, reaching heights unseen since the conclusion of January.