Ethereum whales keep hoarding despite Bybit hack – Buying pressure to ETH’s rescue?

• Over 140k ETH was accumulated by whales in the last 24 hours, signaling strong buying pressure
• Bybit’s $1.1 billion ETH hack shook the market, but speculation around stolen ETH sales could affect price action

Ethereum [ETH] saw a significant shift in market dynamics over the last 24 hours as whales accumulated another 140,000 ETH. Here, it’s worth pointing out that this accumulation trend coincided with a major hack on Bybit. 

Over 405,000 ETH, valued at approximately $1.1 billion, were drained from the exchange and subsequently dispersed across multiple wallets. As expected, this incident has triggered speculation about potential sell-offs and buybacks, making Ethereum’s near-term trajectory uncertain.

Ethereum whales continue to accumulate

According to on-chain data, large Ethereum holders have been steadily increasing their positions lately. 

In the last 24 hours alone, wallets holding between 10,000 and 100,000 ETH accumulated 140,000 ETH. Also, there has been a noticeable move from wallets holding between 100,000 ETH and 1 million ETH.

Source: Santiment

This uptick follows an ongoing trend where whales have been buying dips, potentially signaling confidence in ETH’s long-term outlook.

From a price action perspective, ETH rebounded slightly, trading at $2,692.35 after a 1.15% hike, at press time. However, the 50-day moving average remained above the press time price – A sign that resistance could limit upside in the near term.

Market sentiment after the Bybit hack

The latest Bybit security breach, which led to unauthorized outflows of 405,000 ETH, raised concerns about immediate sell pressure. Historically, such incidents have led to heightened volatility as affected entities attempt to recover stolen funds, sometimes leading to large-scale liquidations. 

Analysts anticipate that either the stolen ETH could be offloaded onto the market, driving prices lower, or institutional buybacks can help stabilize the price.

On-chain metrics noted a mixed reaction from investors. For instance – The number of new Ethereum addresses has remained relatively stable, indicating that retail traders have not significantly altered their positions in response to the event. 

Source: Glassnode

However, an increase in transactions from whale wallets suggested that larger market participants have been adjusting their strategies.

A tenuous recovery?

At the time of writing, Ethereum’s price chart revealed that it remains in a consolidation phase. The MACD indicator seemed to be positioned below zero at press time – A sign of weak momentum.

However, a potential crossover could allude to a shift in trend. Additionally, the accumulation/distribution metric highlighted that while some traders are offloading ETH, others are still buying.

Source: TradingView

If ETH manages to break above the $2,802 resistance level, a rally towards $3,000 could be in play. However, failure to maintain press time levels may see the asset retest support around $2,500.

ETH’s short-term trajectory

Ethereum will remain at a crossroads for now, especially as whale accumulation counterbalances potential selling pressure from the Bybit hack. 

The market’s next move depends on whether institutional buybacks support price stability or whether the influx of stolen ETH into circulation triggers further downside. With strong interest in whales and technical indicators suggesting a potential recovery, ETH traders should closely monitor price movements and on-chain activity in the coming days.