Ethereum must break through the critical $3,000 psychological level to reverse its two-month downtrend, a move that now depends largely on investor sentiment in the wake of the biggest financial hack in crypto history.
The second-largest cryptocurrency has been in a downward trajectory since reaching a high of over $4,100 on Dec. 16, 2024—its highest level since December 2021, according to TradingView data.
Encouragingly, Ether has gained more than 5.38% in the two days since Feb. 21, following a massive $1.4 billion exploit targeting Bybit exchange. The hack primarily involved liquid-staked Ether (STETH) and other digital assets, making it the largest crypto theft on record.
A portion of Ether’s recent gains may be linked to increased spot buying pressure from Bybit itself. Since the attack, the exchange has purchased over 106,498 ETH—valued at approximately $295 million—through over-the-counter (OTC) trades, helping restore nearly 50% of its pre-hack Ether reserves.
Investigators suspect North Korea’s state-backed Lazarus Group orchestrated the attack, meaning the stolen funds may not be sold immediately.
Arkham Intelligence data reveals that Lazarus Group’s main publicly-known wallet holds over $83 million in crypto, including $3.68 million worth of Ether. This amount represents only a fraction of the estimated $1.34 billion stolen by North Korean hackers in 2024, which accounted for 61% of all crypto thefts that year, according to Chainalysis data.
Ether Needs a “Decisive Break” Above $3,000
For Ethereum to reverse its two-month-long decline, it must reclaim the $3,000 resistance level, says Vugar Usi Zade, Chief Operating Officer at Bitget exchange.
“Although a clear breakout has yet to materialize, a strong move above the $2,700–$3,000 range could set the stage for further upside, particularly if institutional interest and ecosystem developments continue to grow,” he told.
Despite short-term price fluctuations, Ethereum’s fundamentals remain “exceptionally strong,” according to Marcin Kazmierczak, co-founder and COO of Redstone, a blockchain oracle provider.
“Ethereum’s underlying value will ultimately prevail, and I firmly believe that. While the market is currently dominated by short-term speculation and, in some cases, questionable activities, the growing involvement of institutional players makes the long-term outlook clear,” he said.
A declining Ether supply across exchanges further supports a bullish case. CryptoQuant data shows that total Ether reserves on centralized exchanges dropped to 18.95 million on Feb. 18—the lowest level since July 2016, when ETH was trading at just $14.
However, significant resistance remains near $2,900 and $3,000.
If Ether manages to break past the $3,000 mark, it could trigger more than $623 million in short liquidations across all exchanges, according to CoinGlass data.
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