Ethereum's Price Plummets Despite Bybit's Reserve Recovery

Ethereum (ETH) Remains Under Pressure Despite Bybit’s Recovery

Ethereum (ETH) has been under pressure recently, with its price falling more than 8% in the last 24 hours and over 22% in the past 30 days. This decline comes despite Bybit, a major cryptocurrency exchange, recovering 84% of its reserves following a hack. The hack led to a significant drop in ETH reserves on Bybit, from 443,000 ETH to just 20,250 ETH in a single day, triggering panic selling pressure on ETH and other coins.

Bybit’s recovery of its reserves has been significant, with the exchange surging from 29,000 ETH to 372,000 ETH by February 24, accounting for 84% of its pre-hack reserves. However, Ethereum’s price has not recovered to levels before the hack yet, indicating that market sentiment remains uncertain.

Technical indicators suggest a bearish outlook for Ethereum. The Relative Strength Index (RSI) for ETH was recovering after the Bybit hack, reaching 63.2 yesterday, indicating strong buying momentum. However, it has since dropped sharply and is now at 43, signaling a significant shift in market sentiment. An RSI below 30 indicates that an asset is oversold, potentially signaling buying opportunities, while an RSI above 70 suggests that an asset is overbought, indicating potential selling pressure.

Ethereum’s DMI chart shows the ADX at 18.3, down from 21.4 yesterday, indicating weakening trend strength. An ADX below 20 suggests a lack of clear momentum, aligning with Ethereum’s ongoing downtrend. Meanwhile, the +DI dropped from 30.4 to 20, showing decreased buying interest, while the -DI rose from 12.3 to 22.9, signaling increased selling pressure. The crossover of -DI above +DI confirms bearish dominance, suggesting continued downward pressure on Ethereum’s price.

Ethereum has struggled to break above the $2,850 resistance, which has been repeatedly tested in recent weeks. If the current downtrend continues, ETH could test the support at