Why Is Ethereum Crashing Today: $1.4B Theft Triggers ETH Sell-Off

Why Is Ethereum Going Down: Is a $401,347 ETH Hack Behind The Sell-Off

Ethereum Price Drops Under Bybit Hacker Concerns

Over the past 24 hours, Ethereum (ETH) has dropped dramatically. This decline matched the large Bybit heist in which hackers stole almost 401,347 ETH valued $1.4 billion. The hack has eroded investor confidence, which has increased market volatility.

Bybit Hack: What Happened

Linked to North Korea, the hacker organization Lazarus is the mastermind behind the $1.4 billion Bybit robbery. Blockchain researcher ZachXBT found that the attackers took advantage of a Bybit multisig cold wallet vulnerability. They sent ETH, stETH, cmETH, and mEEK to anonymous addresses by changing the transaction signing mechanism.

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Oxa4b2fd68593b6f34e51cb9edb66e71c1b4ab449e 

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The hackers have been turning steal of st ETH, cm ETH, and m ETH into ETH, hence raising market concerns of a large sell-off.

Ethereum's Price Drop: Market Reaction

ETH's price dropped from $2,850 to $2,650 over hours following the hack. Reacting quickly, trading volume jumped over 111.37% and topped $32.15 billion. The higher activity draws attention to investor nervousness and the possibility of more volatility.

Ethereum found brief support close to $2,600 despite the fall. The next action ETH might take could depend critically on this level.

Response of Bybit and Investor Mood

Client money is still safe and backed one-to-one, according to bit CEO Ben Zhou. Confidence in centralized exchanges has been eranged, nevertheless. The hack along with the recent conviction of a former Bybit payroll manager for embezzlement of $5.7 million have left investors wondering about the security of the platform.

Ethereum Forecast: Important Levels to Watch

Around $2,900, Ethereum is encountering strong opposition consistent with its 200-day moving average. Should ETH garner support close to $2,600, a return of $2,900 is feasible. A fall below $2,600, though, might set off more losses that might drive ETH toward $2,400.

Whales Accumulate Despite Market Fear

Fascinatingly, on-chain data shows whales have accrued 140,000 ETH throughout the past 24 hours. This implies that big investors see the decline as a purchasing chance, so implying long-term optimistic attitude.

Will ETH recover or drop more?

Ethereum's price is just at a turning point. While a breach lower would cause more losses, holding support close to $2,600 might start a rebound. ETH's next action will be quite important given the changed investor confidence and more market volatility. To negotiate the next days, traders should pay attention to important support and resistance levels.