Ethereum (ETH) experienced a significant drop in the past 24 hours, driven by a massive $1.4 billion theft from Bybit. The hack, involving 401,347 ETH (valued at $1.12 billion), eroded investor confidence and intensified market volatility. Below, we break down the key events and their implications.
Why Ethereum Crashed: Massive ETH Sell-Off After $1.4 Billion Hack
ETH Price Drops Amid Bybit Security Breach
Ethereum's price fell sharply due to the Bybit hack, where attackers stole 401,347 ETH. The breach amplified fears of further sell-offs, pushing ETH from $2,850 to $2,650 within hours.
The Bybit Hack: What Happened?
The Lazarus Group, a North Korean-linked hacking collective, orchestrated the attack. Blockchain researcher ZachXBT revealed that the hackers exploited a vulnerability in Bybit's multi-signature cold wallet. They manipulated transaction signatures to divert ETH, stETH, cmETH, and mEEK to anonymous addresses.
Key wallet addresses involved:
0x47666fab8bd0ac7003bce3f5c3585383f09486e20xa4b2fd68593b6f34e51cb9edb66e1b4ab449e0xdd90071d52f20e85c89
Hackers converted stolen assets into ETH, fueling panic about potential market dumps.
Market Reaction to Ethereum's Decline
Post-hack, trading volume surged 111.37% to $32.15 billion, reflecting heightened investor anxiety. ETH found temporary support at $2,600, but its next move hinges on holding this level.
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Bybit’s Response and Investor Sentiment
Bybit CEO Ben Zhou assured users that client funds remained safe with 1:1 guarantees. However, trust in centralized exchanges waned due to the hack and a recent $5.7 million embezzlement case involving a former Bybit employee.
Ethereum Price Prediction: Critical Levels to Watch
ETH faces resistance near $2,900 (aligned with its 200-day moving average). A rebound is possible if $2,600 holds, but a breakdown could target $2,400.
Whales Accumulate ETH Despite Panic
On-chain data shows whales bought 140,000 ETH in 24 hours, signaling long-term optimism amid the dip.
Will ETH Recover or Drop Further?
ETH stands at a pivot point. Holding $2,600 may spark a rally, while a breakdown could deepen losses. Traders should monitor support/resistance levels closely.
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FAQs
What caused Ethereum’s price drop?
A $1.4 billion hack on Bybit triggered mass ETH sell-offs, driving the price down.
Who was behind the Bybit attack?
The Lazarus Group, a North Korean hacking team, exploited a multi-signature wallet flaw.
Is my ETH safe on exchanges?
While Bybit claims funds are secure, decentralized wallets offer added protection.
Will ETH recover soon?
Recovery depends on holding $2,600 support; whale accumulation suggests long-term confidence.
How can I protect my crypto?
Use hardware wallets, enable 2FA, and avoid sharing private keys.
What’s next for Ethereum’s price?
Watch $2,600 (support) and $2,900 (resistance) for directional cues.
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