Ethereum Battles Back After $1.4B Hack, Reserves Recover

Coin WorldSunday, Mar 2, 2025 12:07 am ET
1min read

Ethereum's price has been volatile in recent days, trading below the $2,700 mark after struggling to reclaim this level and push above $2,800. The market has been dealing with strong selling pressure, and a major event on Friday added more uncertainty. Bybit, a popular cryptocurrency exchange, suffered a $1.4 billion ETH hack, marking the largest crypto hack in history. This attack triggered a wave of fear that sent Ethereum into lower demand levels, and investors remain cautious as the market assesses the long-term impact of the breach on sentiment and liquidity.

Despite the initial panic, there are signs of recovery. Key metrics from CryptoQuant reveal that Bybit's ETH reserves are slowly recovering. The exchange has experienced positive net flows of 139,000 ETH since the hack, suggesting that confidence is gradually returning. This indicates that Bybit has managed to stabilize its platform, alleviating fears of a prolonged crisis. With Ethereum still trading at critical levels, the market is closely watching whether it can reclaim key resistance zones or face further downside. The next few days will be crucial in determining ETH's short-term direction as buyers attempt to regain control amid lingering uncertainty from the hack.

Ethereum has been struggling as investors grow tired of the massive selling pressure and ongoing negativity surrounding the second-largest cryptocurrency. Since late December, ETH's price has been on a downward trajectory, with no clear signs of a sustained recovery. Sentiment remains bearish as Ethereum continues to trade below key resistance levels, failing to gain momentum for a bullish breakout. Adding to this uncertainty, the Bybit ETH hack on Friday further rattled the market. The attack resulted in over $1.4 billion in ETH being stolen from the exchange, making it the largest crypto hack in history. This event fueled additional selling pressure as panic briefly spread across the market. However, Bybit's rapid response helped contain the situation and prevent a broader selloff.

Key data shared by CryptoQuant's Head of Research, Julio Moreno, reveals that Bybit's ETH reserves are slowly recovering. The exchange has seen positive net flows of 139,000 ETH since the hack, a sign that confidence is gradually returning. This is a positive indicator, suggesting that despite unexpected setbacks, the industry remains resilient. While Ethereum still faces key resistance levels