Ethereum Surges 8%: Traders Bet on $3,000 Rebound Amid Bybit Hack Solutions

Ethereum Price Forecast: ETH Traders Bet on $3,000 Rebound as Tim Beiko Discusses Bybit Hack Solutions

Ethereum price rallied 8% on Sunday, February 22, reclaiming territories just above $2,800. This rebound was fueled by speculations that resolutions to the Bybit hack could inadvertently trigger a bullish impact on the Ethereum market.

Ethereum (ETH) suffered a significant setback on Friday, February 20, as hackers allegedly linked to the Lazarus Group drained 401,346 ETH (~$1.4 billion) from the Bybit exchange. Despite the severity of the breach, Bybit swiftly reassured users, restoring withdrawals and ensuring no customer suffered direct losses. With operations returning to normal within hours, speculation surrounding how the exchange will resolve the stolen funds has become a major driver of Ethereum’s price action.

Notably, top analysts, including early Bitcoiner Arthur Hayes, suggested a blockchain rollback to reverse the illicit transactions. However, key Ethereum stakeholders strongly opposed this solution.

On February 23, Tim Beiko, Core Protocol Developer at the Ethereum Foundation, published a detailed post outlining why a rollback is not a viable option to remediate the Bybit hack. Beiko stated, "From the perspective of the Ethereum protocol, there is nothing to distinguish that transaction from other legitimate transactions on the network. There is no protocol rule that was broken where patching the issue would isolate the hacked funds, like in the case of the Bitcoin exploit."

Within 24 hours of Beiko’s statements, ETH price rebounded sharply, erasing all the losses it suffered on Friday. As seen above, ETH price surged 8% from a low of $2,616 to reclaim the $2,800 territory by press time on Sunday, February 23.

Ethereum traders have reacted positively to Beiko’s rejection of a rollback, signaling confidence in Ethereum’s long-term stability. With prominent mixers like TornadoCash under intense scrutiny from regulators after recent legal battles with the U.S. SEC, the Bybit hacker now faces significant hurdles in laundering the stolen ETH. This leaves only two plausible paths forward: retrieval or