This is considered one of the most serious security breaches in the history of the crypto industry. As the stolen assets were liquidated, the ETH price dropped by more than 5%, putting a lot of pressure on the market.
Can Bybit Buy Back ETH to Cover Losses?
Following the hack, many investors are concerned about the long-term impact on Bybit as well as the ETH price. Some experts believe that the exchange may have to buy back ETH on the market to cover losses for users. If this happens, it could create a wave of buying, helping the ETH price recover.
Bybit Hacker Transfers Funds | Source: Nansen.
However, there is currently no official information from Bybit on how to deal with the damage. Recently, analytics platform Arkham discovered that a Bybit cold wallet had transferred over $500 million to another wallet, sparking speculation that the exchange is preparing funds to refund customers.
Technical Data Shows Increasing Selling Pressure
Following the hack, technical indicators have clearly reflected the market's loss of confidence. Ethereum's Relative Strength Index (RSI) dropped from 62.8 to 51.6 in a few hours, indicating increasing selling pressure. If the RSI continues to drop below 50, it could signal a stronger bearish trend.
ETH RSI | Source: TradingView
In addition, the Directional Movement Index (DMI) also shows weakness in the buyers. The ADX is currently at 14.9, reflecting a weak trend. The +DI has dropped from 29.6 to 20.94, while the -DI has increased from 11.3 to 16.3, indicating that the sellers are gradually gaining the upper hand. If this trend continues, ETH price may face further downward pressure.
Next Scenario for ETH Price
If the stolen ETH continues to be liquidated and investor confidence weakens, ETH may test the important support level at $2,551. If it fails to hold, the price may drop to $2,160.
On the contrary, if Bybit can recover assets or implement support measures, ETH price may recover to the resistance level of $3,020. If this level is broken, the price may continue to aim for $3,442 – the highest level since late January.
Conclusion
The Bybit hack not only affected Ethereum price but also affected market sentiment. As the crisis continues, investors need to closely monitor Bybit's next developments as well as technical indicators to make appropriate decisions.
