Ethereum and the Death Cross

A death cross occurs when the 50-day moving average crosses below the 200-day moving average, and it has been formally confirmed by Ethereum. This indicator could signal further market pressure, potentially pushing Ethereum prices lower.

However, the situation for the second-largest cryptocurrency is turning surprisingly positive, even after a recent hack.

Impact of Bybit’s Security Breach

The movement of ETH from Bybit’s cold wallets significantly influences its price action. A major security breach at the cryptocurrency exchange led to the transfer of over $1 trillion in assets associated with Ethereum.

Ben Zhou, CEO of Bybit, stated that though a hacker exploited a vulnerability in the exchange’s cold wallet system, the company’s total assets still significantly exceed the amount stolen. This assurance seems to have stabilized market sentiment surrounding ETH, effectively halting panic selling.

Positive On-Chain Data

On-chain data shows substantial volumes of stETH and mETH trading for ETH on decentralized exchanges, supporting price action and short-term demand. Traders are focusing on key resistance levels as ETH displays unexpected strength despite the confirmed death cross.

The psychological $3,000 mark, close to the 50-day moving average, represents the next major hurdle. A breakout above this threshold could potentially counter the bearish implications associated with the death cross.

Future Outlook

However, if Ethereum cannot sustain its rally, it may still drop to $2,700 or lower, especially if overall market sentiment worsens. Currently, unusual conditions appear to be driving Ethereum’s recovery. The sustainability of this rally will depend on how quickly Bybit addresses its security breach and whether buyers can maintain control above critical technical levels.