Ether, the world’s second-largest cryptocurrency, must surpass the critical $3,000 level to halt a two-month decline following the unprecedented financial hack at Bybit. After peaking above $4,100 in December 2024, Ether has trended downward, according to TradingView data. However, Ether witnessed a 5.38% increase in the two days after Bybit’s $1.4 billion hack, which was primarily executed through the theft of liquid-staked Ether (STETH) and other assets.
Bybit responded by purchasing over 106,498 Ether, worth $295 million, in over-the-counter trades, which nearly restored 50% of their pre-hack Ether reserves. The hacking incident is suspected to be orchestrated by the North Korean Lazarus Group, whose publicly known wallet now holds over $83 million in crypto, including $3.68 million in Ether.
To achieve a sustained recovery, Ether must decisively move above the $2,700-$3,000 resistance zone, as highlighted by Vugar Usi Zade of Bitget exchange. This potential rally could trigger over $623 million in leveraged short liquidations across exchanges. Despite the recent volatility, Ether’s fundamentals remain robust, with reduced Ether reserves on exchanges indicating bullish sentiment.
