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Steve Muchoki
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Key Notes
- Benjamin Cowen noted that Ether's price is likely to drop again in the coming weeks and consolidate before kickstarting a fresh bull run.
- The Ethereum network remains the undisputed leader in web3 and tokenization amid heightened competition from other L1 blockchains.
After gaining over 5 % last week, Ethereum price ETH $1 873 24h volatility: 6.7% Market cap: $226.09 B Vol. 24h: $18.61 B opened the last week of February in a bearish outlook. The large-cap altcoin, with a fully diluted valuation of about $329 billion and a 24 hour average trading volume of over $25 billion, had dropped over 3% on Monday, during the mid-European session to trade about $2,725.
Ethereum price has been trapped in a weekly correction since early December 2024, characterized by lower lows and lower highs. In the daily time frame, Ether price has been forming a potential bearish flag after experiencing a significant resistance level around $2,844.
From a technical analysis standpoint, Ether price is likely to retest a crucial support level around $2,560 in the coming days. Furthermore, Bitcoin price has been consolidating above a crucial support level around $95.5k in the past three weeks.
In case Ether price breaches the support range between $2,560 and $2.6K, a capitulation towards $2.2K will be inevitable. As a result, Ethereum price will have established a horizontal channel with a range between $4K and $2.2K, which will form the basis for the next major breakout in the coming months.
The short-term bearish sentiment will, however, be invalidated if Ether price consistently closes above the resistance level around $2.8K. In such a scenario, Ether price will be aiming for $3.3K next, which coincides with the 2.618 daily Fibonacci extension.
Accumulate $ETH #Ethereum before it's too late..!! pic.twitter.com/8xq4zOm2yI
— Captain Faibik 🐺 (@CryptoFaibik) February 24, 2025
Mixed Reactions from Ethereum Whales Following Bybit Hack
Following last week’s Bybit hack, which resulted in a loss of over $1.4 billion worth of Ethereum units, on-chain data shows a mixed reaction from whale investors. Over the weekend, the Bybit hacker – believed to be the states-sponsored Lazarus Group – swapped over $100 million worth of stolen Ether to Bitcoin.
Bybit announced earlier today that a coordinated effort led to the freezing of $42 million of the stolen assets. Meanwhile, on-chain data shows Bybit purchased 266,694 Ether over the weekend, worth about $742 million.
It seems that #Bybit has bought 266,694 $ETH($742M) after being hacked.
0x2E45…1b77(related to #Bybit) bought 157,660 $ETH($437.82M) from Galaxy Digital, FalconX, Wintermute via OTC.
0xd7CF…A995(likely related to #Bybit) bought 109,033 $ETH($304.12M) from DEXs and CEXs.… pic.twitter.com/8FfGZo18OU
— Lookonchain (@lookonchain) February 24, 2025
Meanwhile, the US spot Ether ETFs recorded a net cash outflow of 26 million last week amid low demand from institutional investors.
Bigger Picture
Despite the short-term horizontal consolidation, Ethereum network remains a leader in enabling mass adoption of Web3 protocols and digital assets. As of this writing, the Ethereum network had more than $58 billion in total value locked (TVL) and over $122 billion in stablecoins market cap.
According to market data from defillama, the Ethereum network has seen its TVL increase from 13.46 million to around 21.6 million ETH in the past twelve months. Worth noting that over 33.5 million Ether has been staked to secure the Ethereum network by more than 100K validators led by Lido DAO (LDO).
With the rising adoption of Ether by institutional investors, the imbalance between its supply and demand will be a major fuel to the long term growth and bullish sentiment.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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