Ethereum Plunges 5% After $1.5B Bybit Hack: Market Braces for Impact

Ethereum (ETH) Drops 5% After $1.5 Billion Bybit Hack: What’s Next?

The Bybit hack, one of the largest security breaches in crypto history, has sent shockwaves through the market. Over $1.5 billion worth of Ethereum (ETH) was stolen from the exchange's hot wallets, leading to a 5% drop in ETH's price. As the stolen assets are being liquidated, key technical indicators have been impacted.

Bybit's next moves are under scrutiny, with speculation growing about a potential market buyback to compensate users. This could create significant buying pressure, but it remains uncertain how Ethereum's price will behave in the coming days as the situation continues to unfold.

The hack has caused Ethereum's Relative Strength Index (RSI) to drop sharply from 62.8 to 51.6 in just a few hours, indicating a sudden loss of buying momentum and increased selling pressure. Although the RSI is still above the neutral 50 mark, the sharp drop suggests that bullish sentiment has weakened considerably.

Ethereum's Directional Movement Index (DMI) chart shows that its Average Directional Index (ADX) is currently at 14.9, indicating a weak trend. The +DI has dropped from 29.6 to 20.94, showing a decline in buying pressure since the Bybit hack. Conversely, the -DI has risen from 11.3 to 16.3, demonstrating selling pressure as the stolen ETH is being liquidated. This shift suggests a change in market sentiment, with sellers gaining more control over the price movement.

If liquidations continue or user confidence weakens following the Bybit hack, ETH could soon test the support at $2,551. A break below this level could lead to a decline toward $2,160, signaling increased selling pressure. Conversely, if Bybit manages to recover the stolen assets or if significant buying pressure emerges, ETH price could test the resistance at $3,020. Breaking this level could push the price higher to $3,442, its highest point since the end of January.