In Summary
Ethereum is down over 18% in 30 days, facing bearish pressure despite Bybit’s reserves recovering after a major hack.
The RSI dropped from 63.2 to 43, signaling a negative shift, with increased selling pressure and decreased buying interest.
ETH struggles below the $2,900 resistance; a breakthrough could signal a bullish reversal, but downside risks remain.
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Ethereum (ETH) has fallen over 8% in the last 24 hours and over 22% in the past 30 days, reflecting bearish market sentiment. The price was declining before the Bybit hack occurred, which further impacted market sentiment.
Despite Bybit recovering 84% of its reserves, ETH’s price remains under pressure. With a key resistance level at $2,850 and no break above $2,900 since February 2nd, 2025, Ethereum’s outlook remains uncertain as bearish indicators continue to dominate.
Bybit is Recovering ETH Reserves After Hack
Ethereum’s supply on Bybit plummeted after the hack, dropping from 443,000 ETH to just 20,250 ETH in a single day.
This sudden drop triggered selling pressure on ETH and also BTC and other coins, as investors feared a potential liquidity crisis.
The sharp decline in reserves fueled uncertainty, leading to widespread speculation about the consequences. Some users suggested that Bybit might be forced to buy back ETH to restore its reserves, potentially creating significant buying pressure.
As of February 22, 2025, Bybit’s ETH reserves have recovered significantly, rising from 29,000 ETH to 372,000 ETH on February 24, 2025, representing 84% of the pre-hack reserves.
The market’s initial panic selling appears to have been temporary, and the recovery in reserves could lead to renewed buying interest in ETH. However, Ethereum’s price has not yet recovered to pre-hack levels.
Indicators Show No Signs of Bullish Momentum
Ethereum’s Relative Strength Index (RSI) recovered after the Bybit hack, reaching 63.2 yesterday, suggesting strong buying momentum.
However, it has since dropped sharply and currently sits at 43, signaling a significant shift in market sentiment. The RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100.
Typically, an RSI above 70 indicates that an asset is overbought, signaling potential selling pressure, while an RSI below 30 suggests that an asset is oversold, potentially signaling a buying opportunity.
An RSI between 30 and 70 is generally considered neutral, with movements within this range reflecting normal market fluctuations.
Ethereum’s RSI dropping from 63.2 to 43 in just one day indicates a rapid shift from bullish to bearish sentiment. This significant decrease could point to increased selling pressure or decreased buying interest, possibly due to lingering concerns about the aftermath of the Bybit hack.
The drop to 43 also brings the RSI closer to oversold territory, which, if continued, could indicate a further downtrend. However, if buying interest returns, the RSI could stabilize or even rebound, suggesting a potential recovery.
Ethereum’s DMI chart shows the ADX at 18.3, down from 21.4 yesterday, indicating weakening trend strength. An ADX below 20 suggests a lack of clear momentum, consistent with Ethereum’s current downtrend.
Meanwhile, the +DI dropped from 30.4 to 20, indicating decreased buying interest, while the -DI rose from 12.3 to 22.9, signaling increased selling pressure.
The crossover of the -DI above the +DI confirms the dominance of the downtrend, suggesting continued downward pressure on Ethereum’s price.
The weakening ADX, combined with the rising -DI, indicates that the downtrend could persist unless buying momentum returns. This could lead to further price declines or sideways movement in the short term.
Ethereum Price Has Been Below $2,900 for Three Weeks
Ethereum has struggled to break through the $2,850 resistance level, which has been tested multiple times in recent weeks. If the current downtrend continues, ETH could test the support level at $2,551, and if that level fails, it could decline further to $2,159.
Notably, Ethereum has not surpassed the $2,900 level since February 2nd, 2025, indicating strong resistance within this range.
However, if Bybit successfully restores its reserves to pre-hack levels, this could create positive sentiment for ETH. In this case, the uptrend could retest the $2,850 resistance level, and if surpassed, Ethereum’s price could rise to $3,020.
If the bullish momentum continues, the next target would be $3,442. Surpassing the $2,900 level would be crucial, as ETH has struggled with this level since early February, potentially signaling a bullish reversal.
All information on our website is published in good faith and for general informational purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk, and they should re-evaluate it.
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