Ethereum price rallied 8% to reclaim territories just above $2,800 on Sunday, February 23, propelled by speculations that resolutions to the Bybit’s 401,346 ETH hack could inadvertently trigger a bullish impact.
Ethereum (ETH) rebounds 8% as community anticipates bullish resolution to Bybit hack
Ethereum (ETH) suffered a significant setback on Friday as hackers, allegedly linked to the Lazarus Group, drained 401,346 ETH (~$1.4 billion) from the Bybit exchange. Despite the severity of the breach, Bybit swiftly reassured users, restoring withdrawals and ensuring no customer suffered direct losses. With operations returning to normal within hours, speculation surrounding how the exchange will resolve the stolen funds has become a major driver of Ethereum’s price action.
Notably, top analysts—including early Bitcoiner Arthur Hayes—suggested a blockchain rollback to reverse the illicit transactions. However, key Ethereum stakeholders strongly opposed this solution.
On February 22, Tim Beiko, Core Protocol Developer at the Ethereum Foundation, published a detailed post outlining why a rollback is not a viable option to remediate the Bybit hack.
“From the perspective of the Ethereum protocol, there is nothing to distinguish that transaction from other legitimate transactions on the network. There is no protocol rule that was broken where patching the issue would isolate the hacked funds, like in the case of the Bitcoin exploit.”
—Tim Beiko, Ethereum Foundation, Feb 22, 2025
Within 24 hours of Beiko’s statements, ETH price rebounded sharply erasing all the losses it suffered on Friday. As seen above, ETH price surged 8% from a low of $2,616 to reclaim the $2,800 territory by press time on Sunday, February 23.
Why Tim Beiko’s Statements Propelled Ethereum Price
Ethereum traders have reacted positively to Beiko’s rejection of a rollback, signaling confidence in Ethereum’s long-term stability. However, with prominent mixers like TornadoCash under intense scrutiny from regulators after recent legal battles with the U.S. SEC, the Bybit hacker now faces significant hurdles in laundering the stolen ETH.
This leaves two plausible paths forward for ByBit: retrieval or confiscation of the funds through law enforcement as evidenced by the $140 million bounty declared by the time. Alternatively, the Exchange may have purchase the lost ETH worth $1.4 billion from the open market to balance its books.
Both scenarios present fresh bullish narratives for Ethereum’s near-term price action:
- ETH Supply Reduction via Litigation: If law enforcement intervenes, the stolen 401,346 ETH could be locked up in lengthy legal proceedings, effectively removing it from active circulation. Historical precedent suggests that such cases can take years to resolve. For context, customer refunds from the FTX liquidation in 2022 only began distribution on February 18, 2025—over two years later—totaling $800 million across 162,000 accounts.
- Bybit Buyback Driving ETH Market Demand: Should Bybit opt to buyback the lost 401,346 ETH from the open market to balance its books, it would effectively squeeze market supply further, inevitably skewing demand and supply dynamics and driving up Ethereum prices.
With Ethereum stabilizing above $2,800 amid rising volumes, the bullish momentum could accelerate as the resolution discourse picks up steam in the weeks ahead.
Ethereum Price Forecast: $3,000 rebound viable as community weighs Bybit hack solutions
Having reclaimed all losses from the momentary crash on Friday, Ethereum price forecast remains cautiously bullish as ETH approaches key resistance levels amid renewed buying pressure. The daily chart shows ETH/USDT trading at $2,808, with a 1.63% gain.
The ETH price has pushed above the short-term moving averages, suggesting bullish momentum could extend toward the next resistance at $2,826.02. The orange line, representing a lower timeframe moving average, has acted as dynamic support, preventing a breakdown over the past week. However, overhead resistance from the purple and blue moving averages near $2,994 to $3,039 could limit the upside.
The Volume Delta indicator reflects a net positive buying trend, with 27.97K in net volume favoring the bulls. This indicates growing accumulation, but the lack of a significant breakout suggests buyers remain cautious. The recent two-day bullish move of 8.04% shows that buyers are in control, but the 8.03% drop from a previous move highlights lingering volatility. A confirmed close above $2,811.87 could clear the path for a run toward $3,000, while failure to hold support at $2,771 could reignite selling pressure.
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