Ethereum’s price surged by 8% on Sunday, February 23, as speculation surrounding the resolution of the Bybit hack fueled optimism in the market. The hack, which saw 401,346 ETH (~$1.4 billion) being stolen, caused a significant setback for Ethereum on Friday. Despite the severity of the breach, Bybit quickly reassured users and restored normal operations, leading to speculation on how the exchange would address the stolen funds. The possibility of a blockchain rollback to reverse the illicit transactions was suggested by top analysts, but key Ethereum stakeholders opposed this solution.
Tim Beiko, a Core Protocol Developer at the Ethereum Foundation, published a detailed post outlining why a rollback is not a viable option to address the Bybit hack. Following Beiko’s statements, ETH price rebounded sharply within 24 hours, erasing the losses it suffered on Friday and surging by 8% to reclaim the $2,800 territory. Ethereum traders reacted positively to Beiko’s rejection of a rollback, showing confidence in Ethereum’s long-term stability. With regulatory scrutiny on mixers like TornadoCash and the declaration of a $140 million bounty by Bybit, the hacker now faces challenges in laundering the stolen ETH, leaving two potential paths for the recovery or confiscation of the funds.
There are two bullish narratives for Ethereum’s price action in the near term. The first scenario involves a potential supply reduction via litigation if law enforcement intervenes, locking up the stolen ETH in legal proceedings. The second scenario suggests that Bybit may buy back the lost ETH from the open market to balance its books, effectively reducing supply and driving up prices. With Ethereum stabilizing above $2,800 amid rising volumes, the bullish momentum could accelerate as the resolution discourse gains momentum in the coming weeks.
The Ethereum price forecast remains cautiously bullish as ETH approaches key resistance levels and faces renewed buying pressure. Trading at $2,808 with a 1.63% gain, ETH has pushed above short-term moving averages, indicating potential further upside towards the next resistance at $2,826.02. The Volume Delta indicator reflects a net positive buying trend, with accumulation increasing, although buyers remain cautious. A breakout above $2,811.87 could pave the way for a run towards $3,000, while failure to hold support at $2,771 could lead to selling pressure.
In conclusion, Ethereum’s price surge on Sunday, propelled by optimism surrounding the resolution of the Bybit hack, signals positive sentiment in the market. With various scenarios for the recovery or confiscation of the stolen funds, Ethereum’s near-term price action remains bullish. Traders are closely watching key resistance levels and buying pressure, with a potential run towards $3,000 in sight. As the discourse around the Bybit hack evolves, Ethereum’s stability and potential for further gains are generating optimism among investors and traders.
