Ethereum (ETH) has faced a significant drop of over 8% within the last 24 hours and a substantial decline of more than 22% over the past 30 days, signaling a bearish trend in the market. The Bybit hack has further impacted market sentiment, although Bybit has managed to recover 84% of its reserves post-hack, ETH's price continues to be under pressure.
ETH's price outlook remains uncertain with key resistance at $2,850 and a failure to break above $2,900 since February 2, indicating a prevailing bearish sentiment.
The Rapid Recovery of Bybit's ETH Reserves Post-Hack
The supply of Ethereum on Bybit experienced a drastic decline following the hack, plummeting from 443,000 ETH to just 20,250 ETH within a single day. This sharp decrease led to panic selling pressure on ETH, BTC, and other cryptocurrencies, as traders feared a potential liquidity crisis.
However, since February 22, Bybit has shown a substantial recovery in its ETH reserves, surging from 29,000 ETH to 372,000 ETH by February 24, which accounts for 84% of its reserves pre-hack.
The initial panic selling appears to have been a temporary reaction, and the rebound in reserves could spark renewed buying interest in ETH, despite the fact that the price of Ethereum has not yet fully recovered to pre-hack levels.
Indicators Reflect Bearish Trends in the Market
The Relative Strength Index (RSI) for Ethereum initially showed strong buying momentum reaching 63.2 after the Bybit hack. However, the RSI has since dropped sharply to 43, indicating a significant shift in market sentiment. An RSI of 43 suggests a move towards bearish territory due to increased selling pressure or reduced buying interest, possibly due to concerns surrounding the aftermath of the hack.
Additionally, Ethereum's DMI chart depicts a weakening trend strength with the ADX declining to 18.3 and the crossover of -DI above +DI confirming bearish dominance, signaling continued downward pressure on Ethereum's price.
Ethereum Continues to Struggle Below $2,900 Level
ETH has been struggling to surpass the $2,850 resistance level and has remained below $2,900 for the past three weeks. If the downtrend persists, Ethereum could test support at $2,551 and potentially drop further to $2,159.
However, a successful restoration of Bybit's reserves to pre-hack levels could instill positive sentiment for ETH and potentially lead to a retest of the $2,850 resistance level, with further upward targets at $3,020 and $3,442 if momentum continues.
A breakthrough above $2,900 could be a significant milestone for Ethereum, possibly indicating a bullish reversal in the market.