Ethereum Fluctuates as Bybit’s ETH Reserves Rebound Following Lazarus Group Hack

Ethereum’s price remained relatively stable over the weekend as the market digested the shocking $1.4 billion hack attributed to North Korea’s Lazarus Group.

On Sunday, ETH traded at $2,795, recovering slightly from Friday’s low of $2,665. However, it remains roughly 32% below its December 2023 peak.

Data from Coinglass suggests that Ethereum balances on Bybit have started increasing after a significant drop following the hack. Balances have climbed back to over 200,000 ETH (valued at approximately $558 million), up from Friday’s low of 61,000 ETH.

Several factors may be driving this recovery:

• Bybit’s Reassurance Measures: The exchange may be actively purchasing ETH to restore user confidence.
• User Deposits: Customers could be moving their ETH back to Bybit, reassured by the company’s commitment to fully cover the stolen funds.

To further mitigate the impact, Bybit has launched a $140 million initiative aimed at tracking and recovering the stolen assets.

The breach has raised serious concerns about the security of crypto assets stored in cold wallets by exchanges. The Lazarus Group’s ability to penetrate such secure storage solutions underscores the vulnerabilities that still exist in the crypto industry.

READ ALSO: Zelenskiy Open to Stepping Down if It Secures Peace for Ukraine

Despite its short-term stability, Ethereum’s daily chart suggests potential downside risks. The formation of a death cross—where the 50-day weighted moving average (WMA) crosses below the 200-day WMA—is a historically bearish indicator.

Additionally, Ethereum’s price pattern exhibits a bearish flag, which typically signals a continuation of the existing downtrend. The consolidation phase following the initial decline resembles a rising wedge, another bearish signal.

If this trend holds, Ethereum could see a further drop, with the next key support level at $2,155—this year’s lowest point—representing a potential 23% decline from current levels. Conversely, a bullish breakout would require Ethereum to surpass the $3,085 resistance level, which aligns with the 200-day WMA.