Ethereum Faces Pressure As Hack Slashes Reserves, Next Price Level?

Following a major Ethereum hack that drained a large amount of ETH from Bybit’s wallet the exchange’s ETH reserves have recovered.

According to data, Bybit registered a sharp fall of its ETH reserves from 443,691 ETH before the hack, and at 39,692 ETH within an hour.

The exchange has now managed to successfully recover the loss with the help of multiple loans such as asset purchases, loans, whale deposits.

It has now managed to raise 446,870 ETH ($1.23 billion).

Moreover, Ethereum netflow data also reflects a similar recovery pattern, suggesting that Bybit is actively replenishing reserves.

Analysts believe the exchange is working toward stabilizing its ETH holdings to meet withdrawal demands and restore confidence among users.

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Funding Rate Decline and Market Reactions

The Bybit hack has raised concerns about Ethereum’s price movement, particularly as funding rates show a downward trend.

The funding rate, which measures the cost of holding long or short positions in futures contracts, has turned negative, indicating strong selling pressure.

According to market analysts, if this trend continues, Ethereum could experience difficulty staying above $3,000. Declines in funding rates are typically a sign of bearish sentiment, and traders are now watching $2,500 as the immediate next key support.

Based on historical data, steep declines in funding rates often lead to sideways consolidation periods with increased volatility. This could limit ETH’s short-term movement to between $2,500 and $3,000.

Bybit Hacker Burns $42.7M in ETH

Crypto Rover’s on-chain data show that the Bybit hacker has burned $42.7M of ETH out of the circulating supply.

The market has speculated over what the unintended impact could be on market dynamics, including price, which with less supply can climb higher.

Traders and investors are closely monitoring Ethereum price movement to determine whether this supply shock could contribute to a price rebound.

Some market participants believe that the lower available supply may create buying pressure, but current market uncertainty remains a key factor in ETH’s short-term outlook.

Bybit Recovers Ethereum Reserves Through Whale Support

Whale transactions, loans and direct purchases has resulted in Bybit receiving 446,870 ETH ($1.23bn).

Lookonchain revealed that the exchange has been actively stacking ETH and its data indicate that the exchange obtained 266,694 ETH worth $742 million through OTC market transactions.

Additional reports confirm that exchanges Bitget and MEXC, along with other whale wallets, transferred 88,000 ETH ($239 million) to Bybit within 24 hours of the hack.

This suggests coordinated efforts to restore liquidity and maintain stability in Bybit’s operations.

Meanwhile, Bybit also announced a 10 percent bounty for cybersecurity experts who help recover the stolen funds.

The stolen assets, however, are further subject to the care of Tether, which froze 181,000 USDT tied to the exploit.