Ethereum’s (ETH) price saw a significant rise today, boosting over 5.8% in the last 24 hours to exceed $2,830. This price recovery erased the minor setbacks from the recent Bybit hack. Key factors driving the increase include Bybit’s replenishment of lost reserves, the dismissal of Ethereum chain rollback rumors, and a surge in purchases by large Ether holders, commonly referred to as whales.
Bybit has made notable strides in restoring its Ethereum reserves, recovering nearly 50% of its holdings after a substantial $1.4 billion hack by the Lazarus Group. This recovery was achieved through over-the-counter purchases and emergency transfers from major platforms like Binance and Bitget. Bybit’s operational resilience was further demonstrated by successful processing of over 350,000 withdrawal requests, maintaining user trust.
Ethereum developers, led by Tim Beiko, have firmly dismissed rumors of a blockchain rollback as a response to the hack. Beiko highlighted the impracticality of a rollback, which would disrupt decentralized financial systems and cause more harm than good. Bybit’s CEO, in response, proposed a community vote to make informed decisions on such actions.
Whale activity has intensified, with large holders accumulating around $140 million in Ethereum, providing optimistic traction for the currency’s value. These acquisitions reduce the circulating supply, potentially driving prices up as demand increases. Historically, whale accumulation phases have preceded significant price rallies, suggesting a bullish outlook for Ethereum.
Ethereum saw a rebound from a multimonth trendline support, historically indicative of short-term price increases. The currency faces immediate resistance around the $2,800 to $2,850 range, with further resistance expected at the 50-day EMA near $2,965. Breaching these levels could lead Ethereum to rally towards the 200-day EMA at approximately $3,050. However, a rejection at current resistance could see Ethereum retesting support levels around $2,650 to $2,700. The Relative Strength Index (RSI) indicates improving momentum, though it remains just below the bullish threshold.
